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If the Economy Shown in the Figure Begins on AD1

Question 141

Multiple Choice

If the economy shown in the figure begins on AD1 and SRAS1, what will happen in the short run and long run if the price of oil rises significantly? If the economy shown in the figure begins on AD<sub>1</sub> and SRAS<sub>1</sub>, what will happen in the short run 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.


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.

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