With the discovery of oil or gas in a country, the _____.
A) aggregate demand curve will move to the left
B) the long-run aggregate supply curve will move to the right
C) the short-run aggregate supply curve will move up
D) the aggregate demand curve will become steeper

Question

Quizplus · Accepted Answer

The discovery of oil or gas in a country increases its productive capacity, leading to a rightward shift in the long-run aggregate supply curve as the country can produce more goods and services at the same price levels.

With the Discovery of Oil or Gas in a Country