For an oil-importing country such as the United States, the immediate effect of a supply shock caused by an increase in the price of imported oil would tend to be
a. an increase in real output and a decrease in the general level of prices.
b. a decrease in real output and an increase in the general level of prices.
c. a decrease in both the general level of prices and real output.
d. an increase in both the general level of prices and real output.
B
You might also like to view...
If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 10 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $300 D) $500
Macroeconomics deals with
A) aggregates within the economy. B) specific sectors within the economy. C) the retail industry only. D) decisions made by firms.
If a country tries to stimulate the economy with fiscal policy, the effects will be exchange rate
a. depreciation, lower interest rates, and a small increase in aggregate demand. b. depreciation, higher interest rates, and a small decrease in aggregate demand. c. appreciation, lower interest rates, and a small increase in aggregate demand. d. appreciation, higher interest rates, and a small increase in aggregate demand.
Aggregate expenditure equals
a) C+I+G+X-M b) C+I+G+X+M c) C+I+G d) C+I+G+X