In 2005 hurricane Katrina devastated large portions of the Gulf Coast economy.Many refineries went offline disrupting oil refining and distribution.What do you think was a likely result?
A) the restricted supply constituted a cost push shock that would have shifted the long run AS curve to the right
B) the restricted supply constituted a cost push shock that would have shifted the short run AS curve to the left
C) the restricted supply constituted a cost push shock that would have meant an upward movement along the Phillips curve
D) all of the above
E) none of the above
Correct Answer:
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