Hydraulic fracturing (fracking) has the potential to significantly increase the amount of natural gas produced in the United States. According to the AD/AS model, in the Short-Run,
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Ans.
GDP ---------------------- A.will increase as the quantity will increase and will be closer to LRAS which is dipicted as a vertical lne.
Price Level ------------- C.will decrease because the supply will shift right ward , making price to decrease and quantity to increase.
Employment ------------ A. will increase as the short run supply curve will right , because higher output is required.
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