The price of a barrel of oil doubled between 2007 and the middle of 2008. To make matters worse, a financial crisis hit the U.S. economy starting in August of 2007. Which of the following is TRUE of the United Kingdom's experience?
A) The increase in the price of oil immediately shifted the AS curve to the left.
B) The financial crisis did not take hold right away so the AD curve did not immediately shift.
C) Eventually, the Lehman Brothers bankruptcy caused a negative demand shock leading to a further fall in output and an increase in the unemployment rate.
D) All of the above.
E) None of the above.
D
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The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is complete when
a. no firms want to enter or exit the industry. b. every firm has adjusted its production process to make the most efficient use of its resources. c. investors in the industry receive the standard economy-wide rate of return on their investments. d. All of the above are correct.
The idea that expansionary fiscal policy has a positive affect on investment is known as
a. monetary policy. b. crowding out. c. the investment accelerator. d. the multiplier.
Which of the following statements accurately contrasts individual behavior and group behavior?
a. Group behavior is more predictable than individual behavior. b. Group behavior is more dishonest than individual behavior. c. Group behavior is more varied than individual behavior. d. Group behavior is more objective than individual behavior.
When you are a secretary and there are seven levels between your role and the CEO your organization is considered to be
a. fat b. tall c. flat d. short