When OPEC's manipulation of oil supplies in 2000 doubled the price of energy, according to the AS/AD model, the
a. aggregate supply curve shifted to the right
b. aggregate supply curve shifted to the left
c. the aggregate demand curve shifted to the right
d. aggregate demand curve shifted to the left
e. price level in the economy fell
B
You might also like to view...
The aggregate demand curve is downward sloping
a. True b. False Indicate whether the statement is true or false
When interest rates are higher:
a. the opportunity cost of holding monetary assets is higher, and the quantity of money demanded, but not the demand for money, is lower. b. the opportunity cost of holding monetary assets is higher, and the demand for money increases c. the opportunity cost of holding monetary assets is lower, and the quantity of money demanded, but not the demand for money, is greater. d. the opportunity cost of holding monetary assets is lower, and the demand for money increases.
The cross-price elasticity of demand between bread and potatoes is estimated to be 0.5. This implies bread and potatoes are:
A. normal goods. B. complements. C. substitutes. D. unrelated.
What are royalties?
a. fees paid to celebrities for using their names b. fees paid to law firms and accountants c. a percentage of profits paid to the government d. a percentage of earnings paid for a franchise