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

question 119

Multiple Choice

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

• A) SRAS;downwards,lower;higher
• B) AD;to the left;lower;higher
• C) SRAS;upwards;higher;higher
• D) SRAS;upwards;higher;lower
• E) LRAS;to the right;higher;lower

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Definitions:

Inability to Innovate

The lack of capability or creativity in developing new products, services, or processes, which can hinder a business's growth and competitiveness.

Initial Financing

The first round of funding a business obtains to start operations, which can come from a variety of sources including personal savings, loans, or investor money.