Recall the Application about falling oil prices and their effect on the U.S. economy to answer the following question(s).
-According to this Application, lower oil prices should ________ aggregate ________.
A) increase; demand
B) decrease; demand
C) decrease; supply
D) not change; demand

Question

Quizplus · Accepted Answer

Lower oil prices should increase aggregate demand because consumers and businesses will have more money to spend and invest. This can lead to increased economic activity and growth.

Recall the Application About Falling Oil Prices and Their Effect