Think of the impact on short run aggregate supply

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In December 2014, the international price of oil has dropped to almost half of its level in June 2014. What do you think the expected impact of this drop on the US economy in the short run and in the long run using the AD and AS model? Hint: Think of the impact on short run aggregate supply in the US and assume that the US economy initially operates at the potential GDP level.

Reference no: EM13985673

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