"Fracking" is a relatively new technology that allows drillers to extract significantly larger quantities of natural gas from existing deposits than was previously possible. How is this discovery likely to affect the economy? (Hint: Think about whether this will have a short-run or long-run effect.) This discovery will likely: increase both SRAS and LRAS, leading to a long-term increase in output and decrease in prices. increase AD but decrease both SRAS and LRAS, leading to an uncertain change in long- term output and a decrease in prices. O decrease both SRAS and LRAS, leading to a long-term decrease in output and increase in prices.
"Fracking" is a relatively new technology that allows drillers to extract significantly larger quantities of natural gas from existing deposits than was previously possible. How is this discovery likely to affect the economy? (Hint: Think about whether this will have a short-run or long-run effect.) This discovery will likely: increase both SRAS and LRAS, leading to a long-term increase in output and decrease in prices. increase AD but decrease both SRAS and LRAS, leading to an uncertain change in long- term output and a decrease in prices. O decrease both SRAS and LRAS, leading to a long-term decrease in output and increase in prices.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:"Fracking" is a relatively new technology that allows drillers to extract significantly larger
quantities of natural gas from existing deposits than was previously possible. How is this
discovery likely to affect the economy? (Hint: Think about whether this will have a short-run or
long-run effect.)
This discovery will likely:
O increase both SRAS and LRAS, leading to a long-term increase in output and decrease in
prices.
O increase AD but decrease both SRAS and LRAS, leading to an uncertain change in long-
term output and a decrease in prices.
decrease both SRAS and LRAS, leading to a long-term decrease in output and increase
in prices.
O increase AD, SRAS, and LRAS, leading to a long-term increase in output and an uncertain
change in prices.
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