If Iraq were to become a stable oil producing friend of the U.S., this would likely

Question

Quizplus · Accepted Answer

If Iraq were to become a stable oil producing friend of the U.S., it would likely increase the global supply of oil, which would lead to a shift in the aggregate supply curve to the right. This would result in an increase in economic output and a decrease in the general price level. Therefore, the best choice is B, indicating an increase in aggregate supply.

If Iraq Were to Become a Stable Oil Producing Friend