Which of the following describes what would happen after an increase in oil prices?
A) A downward shift of the aggregate supply curve as unit costs decrease,followed by a gradual increase in the wage as employment increases,leading to a leftward shift of the aggregate supply curve
B) An upward shift of the aggregate supply curve as unit costs increase,followed by a gradual decrease in the wage as employment decreases,leading to a leftward shift of the aggregate supply curve
C) An upward shift of the aggregate supply curve as unit costs increase,followed by a gradual decrease in the wage as employment decreases,leading to a rightward shift of the aggregate supply curve
D) A downward shift of the aggregate supply curve as unit costs decrease,followed by a gradual decrease in the wage as employment decreases,leading to a rightward shift of the aggregate supply curve
E) An upward shift of the aggregate supply curve as unit costs increase,followed by a gradual decrease in the wage as employment increases,leading to a rightward shift of the aggregate supply curve.
Correct Answer:
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