Analyze the following scenarios using ad/as models.

i) There is a sharp increase in the price of oil in the global economy.

ii) A favorable technological change causes the long run as curve to shift outward.

iii) The federal government decides to pursue a spending program building interstate highways and bridges.

Answer rating: 100% (QA)

i An increase in the price oil is referred to as a supply shock Any supply shock results in a shift ... View the full answer