Suppose the economy is initially at point A in the diagram below, and there is a sudden increase in oil prices that the central bank believes is only temporary. Which point best depicts where the economy will end up in the short run?
A) A
B) B
C) C
D) D
E) E

Question

Suppose the economy is initially at point A in the diagram below, and there is a sudden increase in oil prices that the central bank believes is only temporary. Which point best depicts where the economy will end up in the short run? 
A) A 
B) B 
C) C 
D) D 
E) E

Quizplus · Accepted Answer

The Answer of Suppose the economy is initially at point A in the diagram below, and there is a sudden increase in oil prices that the central bank believes is only temporary. Which point best depicts where the economy will end up in the short run? 
A) A 
B) B 
C) C 
D) D 
E) E

Suppose the Economy Is Initially at Point a in the Diagram