Assume an economy operates in the intermediate range of its aggregate supply curve.
State the direction of shift for the aggregate demand or aggregate supply curve for each of the following changes in conditions and the effect on the price level, real GDP, and employment.
a) If the price of crude oil rises significantly, the---------- (AS/ AD) curve will shift --------- (left/ right) resulting in ---------- (a decrease / an increase) in price levels, ---------- (a decrease / an increase) in real GDP, and ------------- (a decrease / an increase) in employment.
