AS' AS Price Level P2 P1 AD Y2 Y1 Real National Income The graph shows the effects of a significant increase in oil prices. Which of the following is likely to occur in the short run? O, an increase in inflation O long run increase in real GDP O a decrease in inflation O short run increase in real GDP

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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AS' AS
Price
Level
P2
P1
AD
Y2 Y1
Real National
Income
The graph shows the effects of a significant increase in oil prices. Which of the following is likely to
occur in the short run?
an increase in inflation
O long run increase in real GDP
O a decrease in inflation
O short run increase in real GDP
Transcribed Image Text:AS' AS Price Level P2 P1 AD Y2 Y1 Real National Income The graph shows the effects of a significant increase in oil prices. Which of the following is likely to occur in the short run? an increase in inflation O long run increase in real GDP O a decrease in inflation O short run increase in real GDP
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