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

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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