Suppose the Price of an Important Natural Resource Such as Oil

question 16

Multiple Choice

Suppose the price of an important natural resource such as oil falls. What will be the effect on the short-run aggregate supply curve?

• A) There will be movement to the left, along the aggregate supply curve.
• B) The aggregate supply curve will shift to the left.
• C) There will be movement to the right, along the aggregate supply curve.
• D) The aggregate supply curve will shift to the right.

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Definitions:

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