Suppose that technological changes allow us to more easily access oil, and therefore lower oil prices. According
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Question:
Suppose that technological changes allow us to more easily access oil, and therefore lower oil prices. According to the aggregate supply and demand (AS-AD) model, the lower price of oil will increase the__________ and cause the inflation rate to __________.
A. aggregate demand, increase
B. aggregate demand, decrease
C. long run aggregate supply, increase
D. long run aggregate supply, decrease
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