Starting from long-run equilibrium,the long-run impact(s)of a sharp drop in oil prices,compared to the original equilibrium,would be
A) higher inflation.
B) higher output.
C) higher inflation and higher output.
D) lower inflation and lower output.
E) no change in inflation or output.

Question

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The Answer of Starting from long-run equilibrium,the long-run impact(s)of a sharp drop in oil prices,compared to the original equilibrium,would be
A) higher inflation.
B) higher output.
C) higher inflation and higher output.
D) lower inflation and lower output.
E) no change in inflation or output.

Starting from Long-Run Equilibrium,the Long-Run Impact(s)of a Sharp Drop in Oil