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AP® Macroeconomics

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Moderate

New Oil and the AD/AS Model

APMACR-GBPRFP

What impact would the discovery of new, easily accessible oil fields have on the aggregate demand/aggregate supply model, all else equal?

A

It would cause an increase in aggregate demand.

B

It would cause an increase in short-run aggregate supply.

C

It would cause an increase in long-run aggregate supply.

D

It would cause a decrease in aggregate demand.

E

It would cause a decrease in short-run aggregate supply.