If there is a large increase in the price of oil, which of the following would most likely occur in the short run?
a. The aggregate demand curve shifts upward, the price level rises, and output increases.
b. The aggregate supply curve shifts downward, the price level falls, and output increases.
c. The aggregate demand curve shifts downward, the price level falls, and output falls.
d. The aggregate demand curve shifts upward, output remains unchanged, and the price level rises.
e. The aggregate supply curve shifts upward, the price level rises, and output falls.
E
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One of the problems with a growing national debt is the growing interest payments which must be paid on that debt
a. True b. False Indicate whether the statement is true or false
Some economists argue that GDP overstates overall economic welfare because it does not include the impact of bads such as pollution
Indicate whether the statement is true or false
A proposed increase in the federal income tax rates may actually be viewed favorably by many mayors of cities because:
A. it will allow them to also raise their tax rates. B. it will cause the price of municipal bonds to increase and their yields to decrease. C. people will pay less attention to local taxes. D. it will cause the demand for municipal bonds to increase and their yields to increase.
If a lump-sum income tax of $25 billion is levied and the MPS is .20, the:
A. saving schedule will shift upward by $5 billion. B. consumption schedule will shift downward by $25 billion. C. consumption schedule will shift downward by $20 billion. D. consumption schedule will shift upward by $25 billion.