Suppose the economy is initially at point A in the diagram below,and there is a sudden increase in oil prices that the central bank believes is only temporary.Which point best depicts where the economy will end up in the short run?
A)A
B)B
C)C
D)D

Question

Suppose the economy is initially at point A in the diagram below,and there is a sudden increase in oil prices that the central bank believes is only temporary.Which point best depicts where the economy will end up in the short run? 
A)A 
B)B 
C)C 
D)D

Quizplus · Accepted Answer

The Answer of Suppose the economy is initially at point A in the diagram below,and there is a sudden increase in oil prices that the central bank believes is only temporary.Which point best depicts where the economy will end up in the short run? 
A)A 
B)B 
C)C 
D)D

Suppose the Economy Is Initially at Point a in the Diagram