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Business, 10.04.2020 16:53 FortniteB

The United States is at full employment. Suppose that the price of oil falls and the price level at full employment changes by 10.

Draw a curve to show the effect of this event on aggregate supply. Label it AS_1.

If potential GDP increases, ___.

A. there is no change in aggregate supply

B. aggregate supply increases when the economy reaches an inflationary gap

C. the AS curve shifts rightward

D. the AS curve and the AD curve both shift rightward

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