What, if anything, would be the effect of each of the following on the AS curve in
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What, if anything, would be the effect of each of the following on the AS curve in both the short run and the long run, other things being constant?
a. Potential output increases by 25 percent.
b. Oil prices double because of rising demand from China and India with a fixed supply of oil.
c. Consumers become pessimistic and increase their saving rate.
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