Which of the following would lead to an increase in equilibrium output and a decrease in the equilibrium price level in the short run?
A) decrease in oil prices
B) increase in exports
C) increase in wages
D) decrease in taxes

Question

Quizplus · Accepted Answer

A decrease in oil prices reduces production costs, leading to an increase in aggregate supply, which increases equilibrium output and decreases the equilibrium price level.

Which of the Following Would Lead to an Increase in Equilibrium