QuestionJuly 17, 2025

If the price of crude oil decreases, and the US purchases crude oil aggregate supply decreases aggregate supply increases aggregate demand increases aggregate demand decreases

If the price of crude oil decreases, and the US purchases crude oil aggregate supply decreases aggregate supply increases aggregate demand increases aggregate demand decreases
If the price of crude oil decreases, and the US purchases crude oil
aggregate supply decreases
aggregate supply increases
aggregate demand increases
aggregate demand decreases

Solution
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Answer

Aggregate supply increases Explanation 1. Identify the effect of price decrease A decrease in crude oil prices reduces production costs, potentially increasing aggregate supply. 2. Determine US purchase impact Increased purchases by the US can lead to higher demand for crude oil.

Explanation

1. Identify the effect of price decrease<br /> A decrease in crude oil prices reduces production costs, potentially increasing aggregate supply.<br />2. Determine US purchase impact<br /> Increased purchases by the US can lead to higher demand for crude oil.
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