Multiple Choice
Figure 8-2
-In Figure 8-2,again assume that B is the current long-run aggregate supply curve (LRAS) and E is the current short-run aggregate supply curve (SRAS) .If a 90 day embargo of oil from the Middle East to Canada were announced,and if after that 90 day period oil prices were expected to return to normal pre-embargo prices,then you would expect
A) the LRAS and the SRAS to remain at B and E,respectively.
B) the LRAS to remain at B,but the SRAS to shift to D.
C) the LRAS to remain at B,but the SRAS to shift to F.
D) the LRAS to shift to C,and the SRAS to shift to F.
Correct Answer:

Verified
Correct Answer:
Verified
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