In 1973, the Organization of Petroleum Exporting Countries (OPEC) engineered a quadrupling of oil prices by restricting oil production. Which of the following is an appropriate description of this negative supply shock?
A) The AS curve likely shifted to the left and output likely fell because of this adverse shock.
B) In the short-run there was a movement out of general equilibrium leading to an increase in inflation as a likely result of this adverse shock.
C) In the short-run there was a movement out of general equilibrium leading to an increase in unemployment as a likely result of this adverse shock.
D) all of the above
E) none of the above
D
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The labor supply and demand most directly affect the level of ________ in an economy
A) people requiring retraining B) welfare benefits C) people attending colleges D) employment
The above table gives the demand schedule for Billy Bob's BBQ ribs. If the price of a pound of ribs falls from $3 per pound to $1 per pound, what is the change in Billy Bob's total revenue?
A) $42 B) $24 C) -$2 D) -$24
Refer to Table 8-16. Given the information above, what can we say has happened in the economy from 2015 to 2016?
A) The price level has risen. B) The price level has fallen. C) The price level has remained constant. D) Not enough information is available to determine what has happened to prices.
The rising phase of a business cycle measured by an increase in real GDP is called:
A) trough. B) expansion. C) recession. D) contraction.