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The AD-AS Model Predicts That,in a Country Whose Net Exports

Question 86

Multiple Choice

The AD-AS model predicts that,in a country whose net exports of oil are zero,a sudden decrease in the price of oil will shift the ___________ curve ___________,resulting in a ___________ price level and ___________ output level in the short run.


A) AD;to the right,increase;increase
B) AD;to the left;increase;increase
C) SRAS;downwards;increase;increase
D) SRAS;downwards;increase;decrease
E) LRAS;to the left;increase;decrease

Correct Answer:

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