"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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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