In the mid-1970s the price of oil rose dramatically. This
a. shifted aggregate supply left, the price level rose, and real GDP fell.
b. caused U.S. prices to fall, and real GDP rose.
c. caused an increase in U.S. prices and real GDP.
d. caused a decrease in U.S. prices and real GDP.
a
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Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital, ________
A) the wages of these two groups are the same B) men earn significantly more than women C) women earn significantly more than men D) men specialize more in home production
You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie production function has
a. decreasing returns to scale. b. zero returns to scale. c. constant returns to scale. d. increasing returns to scale.
Which of the following alone can explain the change in the price level and output during World War II?
a. aggregate demand shifted right b. aggregate demand shifted left c. aggregate supply shifted right d. aggregate supply shifted left
To stabilize the economy rational expectations theorists favor the use of
A. wage and price controls. B. discretionary fiscal policy. C. discretionary monetary policy. D. policy rules.