Imagine that the AD curve intersects the AS curve in the Neoclassical Region and that the price of oil increases dramatically. What happens to the level of GDP? Group of answer choices (A) It goes down. (B) It stays the same. (C) It goes up.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter26: The Neoclassical Perspective
Section: Chapter Questions
Problem 15RQ: When the economy is experiencing a recession, why would a neoclassical economist be unlikely to...
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Imagine that the AD curve intersects the AS curve in the Neoclassical Region and that the price of oil increases dramatically. What happens to the level of GDP?
Group of answer choices
(A) It goes down.
(B) It stays the same.
(C) It goes up.
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