If there is an increase in the price of oil, a. the output level increase in the short-run but will decline in the medium-run b. the output level will fall in the medium run and the interest rate will rise in the short-run c. the output level will fall in the medium run and the price level will fall in the medium run d. the interest rate will rise in the short-run but will fall in the medium run

If there is an increase in the price of oil, a. the output level increase in the short-run but will decline in the medium-run b. the output level will fall in the medium run and the interest rate will rise in the short-run c. the output level will fall in the medium run and the price level will fall in the medium run d. the interest rate will rise in the short-run but will fall in the medium run

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 2CQQ

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