The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward.
B) favorable supply shock, shifting the short-run aggregate supply curve leftward.
C) adverse supply shock, shifting the short-run aggregate supply curve rightward.
D) adverse supply shock, shifting the short-run aggregate supply curve leftward.
Ans: D) adverse supply shock, shifting the short-run aggregate supply curve leftward.
You might also like to view...
According to the textbook application, recent EPA rules and regulations proposed under the Obama administration
a. fall into the category of market-based policies b. have been met with wide approval among all constituencies c. achieve allocatively efficient levels of pollution abatement d. have been shown to meet the cost-effective criterion e. none of the above
The federal funds market is the market in which:
a. banks borrow from the Fed. b. bank customers borrow from their banks c. banks borrow from each other. d. the federal government borrows from the Fed. e. the federal government borrows from members of the general public.
Which term describes the situation in which a country that can consume more than it can produce as a result of specialization and trade?
a. comparative advantage b. absolute advantage c. gain from trade d. trade advantage
Other things remaining the same, an increase in nominal GDP causes the velocity of money to:
a. Rise. b. Fall. c. Not change.