What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?
a. They increased SRAS, causing real output and employment to increase.
b. They reduced SRAS, causing real output and employment to increase.
c. They increased SRAS, causing real output and employment to decline.
d. They reduced SRAS, causing real output and employment to decline.
D
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When the government has a surplus, as occurred in the late 1990s, the ________ curve of bonds shifts to the ________, everything else held constant
A) supply; right B) supply; left C) demand; right D) demand; left
When the LM curve is horizontal,
A) fiscal policy has no impact on equilibrium income. B) fiscal policy has no impact on the equilibrium interest rate. C) the economy is at full employment. D) monetary policy has no impact on equilibrium income.
Which of the following statements is true regarding utility?
a. Utility can be measured b. Utility cannot be measured c. Utility, at the margin, eventually increases as more of a good in consumed. d. A and C are true
Demand is said to be inelastic if a(n) ______.
a. 9 percent price increase causes a 11 percent increase in quantity demanded b. 5 percent price increase causes 6 percent reduction in quantity demanded c. 8 percent price increase causes an 8 percent reduction in quantity demanded d. 10 percent price increase causes a 2 percent reduction in quantity demanded