What is wrong with the following diagram of the short-run effect of a fall in the price of oil? P SRAS2 SRAS1 P2 P1 221 AD Q2 Q1 Q This is a diagram with price on the vertical axis and quantity on the horizontal axis. There is an AD curve that slopes down and an SRAS1 curve that slopes up. Where the two curves intersect, there is a P1 marked on the vertical axis and a Q1 marked on the horizontal axis. There is a curve labelled SRAS2 that slopes up and is to the left of the SRAS1 curve. Where this SRAS2 curve intersects the AD curve, there is a Q2 on the horizontal axis and a P2 on the vertical axis. Q2 is to left of Q1 and P2 is above P1. O Nothing. O Instead of the SRAS curve shifting, the AD curve should shift right. O The SRAS should shift right. O Instead of the SRAS curve shifting, the AD curve should shift left...

What is wrong with the following diagram of the short-run effect of a fall in the price of oil? P SRAS2 SRAS1 P2 P1 221 AD Q2 Q1 Q This is a diagram with price on the vertical axis and quantity on the horizontal axis. There is an AD curve that slopes down and an SRAS1 curve that slopes up. Where the two curves intersect, there is a P1 marked on the vertical axis and a Q1 marked on the horizontal axis. There is a curve labelled SRAS2 that slopes up and is to the left of the SRAS1 curve. Where this SRAS2 curve intersects the AD curve, there is a Q2 on the horizontal axis and a P2 on the vertical axis. Q2 is to left of Q1 and P2 is above P1. O Nothing. O Instead of the SRAS curve shifting, the AD curve should shift right. O The SRAS should shift right. O Instead of the SRAS curve shifting, the AD curve should shift left...

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 6P

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Similar questions

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