According to the AS-AD Model, If Oil Prices Fall, Then

question 46

True/False

According to the AS-AD model, if oil prices fall, then equilibrium output and the equilibrium prices rise in the short run.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing profit or loss.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Net Sales

Gross sales minus sales returns, allowances, and discounts.

Ending Inventory

The final value of goods available for sale at the end of an accounting period after all inventory purchases and sales have been accounted for.