If South Africa were to discover a plentiful supply of cheap oil, this would: Select one: A. move the AS curve to the right. B. move the AD curve to the right. C. move the AD curve to the left. D. move the AS curve to the left.

If South Africa were to discover a plentiful supply of cheap oil, this would: Select one: A. move the AS curve to the right. B. move the AD curve to the right. C. move the AD curve to the left. D. move the AS curve to the left.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 18QP

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Question

Q12

Use the graph below to answer the question

If South Africa were to discover a plentiful supply of cheap oil, this would:

Select one:

A. move the AS curve to the right.

B. move the AD curve to the right.

C. move the AD curve to the left.

D. move the AS curve to the left.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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