According to the figure of ADAS curves and assuming the country begins on AD1 and SRAS1, what will happen in the short and long run if the price of oil rises significantly? 
A) The economy will move from point C to E to B.
B) The economy will move from point D to C to B.
C) The economy will move from point C to A to B.
D) The economy will move from point D to C to E.
Correct Answer:
Verified
Q77: The aggregate demand curve is positively sloped.
Q186: Cost-push inflation occurs when
A) total spending expands
Q208: Which of the following would cause cost-push
Q209: If the government of Econia raises the
Q212: Falling interest rates mean increased business investment
Q213: Assume that Macroland starts in a long-run
Q214: According to the figure of ADAS curves
Q215: According to the figure of ADAS and
Q242: Cost-push inflation occurs because of a shift
Q245: The 1973 oil shocks created
A) demand-pull inflation.
B)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents