If the price of oil rises, the
A) AD curve and the AS curve shift rightward, the price level rises, and real GDP decreases.
B) AS curve shifts leftward, the price level rises, and real GDP decreases.
C) AD curve and the AS curve shift leftward, real GDP decreases, and the price level rises.
D) AD curve shifts rightward, real GDP increases, and the price level rises.
E) AS curve shifts leftward, the price level rises, and real GDP increases.
B
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A monopolist will operate in the short run if which of the following is above average variable cost?
a. Marginal cost. b. Marginal revenue. c. Price. d. All of these.
A tax that is designed to be progressive will improve
A. Efficiency. B. Vertical equity. C. Equality. D. Horizontal equity.
The law of diminishing returns
A. is completely invalid. B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal product will decline. C. states that if any two resources are combined, production will fall. D. states that profit margins decline as output rises.
Refer to the above table. Given the demand and cost schedules, what is the profit-maximizing price for this monopolist?
A. $10 B. $12 C. $9 D. $11