Refer to the Article Summary. The unexpected increase in the supply of oil mentioned in the article summary resulted in a decrease in the price of oil
After an unexpected decrease in the price of oil, the long-run adjustment ________ the price level and ________ the unemployment rate as they return to their original levels.
A) increases; increases B) decreases; increases
C) increases; decreases D) decreases; decreases
A
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
To graph a relationship involving more than two variables, we use which assumption?
A) linear assumption B) positive relationship assumption C) marginal analysis D) ceteris paribus E) trend assumption
Economists usually assume that people act in a rational, self-interested way. In explaining how consumers make choices this means that economists believe
A) consumers will spend their incomes and time on activities that benefit themselves as much as possible, without regard to the welfare of others. B) consumers spend their incomes to order to accumulate the most goods and services. C) consumers make choices that will leave them as satisfied as possible given their incomes, tastes, and the prices of goods and services available to them. D) consumers will always buy goods and services at the lowest possible prices.
What is meant by petrodollar recycling? Explain the mechanism by which this phenomenon occurred. What were the consequences of this phenomenon for developing countries?
What will be an ideal response?