A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
You might also like to view...
Explain the concept of autonomous consumption
The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by an international body called the World Trade Organization (WTO)
a. True b. False Indicate whether the statement is true or false
Which of the following best describes how an increase in the money supply shifts aggregate demand?
A. The money supply shifts right, prices fall, spending increases, and aggregate demand shifts right. B. The money supply shifts right, the interest rate falls, investment increases, and aggregate demand shifts right. C. The money supply shifts right, prices rise, spending falls, and aggregate demand shifts left. D. The money supply shifts right, the interest rate rises, investment decreases, and aggregate demand shifts left.
An increase in the discount rate ________ the present value of a bond and ________ the price of the bond.
A) increases; increases B) decreases; decreases C) decreases; increases D) increases; decreases