In 1997, OPEC ministers agreed to a 10 percent increase in oil production. This decision should be expected then to shift the United States's
a. AS curve to the right, which would raise the U.S. price level and lower real GDP in the U.S.
b. AS curve to the right, which would lower the U.S. price level and raise real GDP in the U.S.
c. AS curve to the left, which would lower the U.S. price
level and raise real GDP in the U.S.
d. AD curve to the left, which would lower the U.S. price level and real GDP
e. AD curve to the right, which would raise the U.S. price level and real GDP
B
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In June, buyers of titanium expect that the price of titanium will fall in July. What happens in the titanium market in June, holding everything else constant?
A) The quantity demanded increases. B) The demand curve shifts to the left. C) The quantity demanded decreases. D) The demand curve shifts to the right.
When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services
A) is less than the marginal benefit consumers receive from them. B) is equal to the marginal benefit consumers receive from them. C) is greater than the marginal benefit consumers receive from them. D) is zero due to the insurance payments.
Which of the following would not be included in the gross private domestic investment (I) category of GDP?
a. A bakery's purchase of a new oven. b. A retailer's additions to its inventories. c. Newly built residential construction. d. A bank's purchase of a U.S. Treasury bond.
According to the Keynesian view, if purchasers buy more goods and services than businesses expect,
a. the inventories of firms would decline, and the firms would expand output in order to restore their inventories to desired levels. b. the inventories of firms would increase, and the firms would reduce output until inventories were cut back to the desired level. c. the current level of income would persist in the future. d. firms would reduce their investment, and the economy would fall into a recession.