Will a decrease in the price of crude oil cause an increase in the aggregate demand or aggregate supply?
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would a decrease in the price of crude oil cause a decrease in AD or AS
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Answer:
a drop in price for something as pervasive in the economy as oil, will have the same effect as an increase in the money supply. When more money is available, demand will increase. This is called the Keynes effect. Remember to use macroeconomics for AD/AS questions. micro supply and demand answers don't always apply
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