The significant increases in oil prices during the late 2000s was an example of
A. an aggregate supply shock that reduced the price level and increased the rate of growth of real Gross Domestic Product (GDP).
B. an aggregate demand shock that increased the price level and increased the rate of growth of real Gross Domestic Product (GDP).
C. an aggregate supply shock that increased the price level and reduced the rate of growth of real Gross Domestic Product (GDP).
D. an aggregate demand shock that reduced the price level and reduced the rate of growth of real Gross Domestic Product (GDP).
Answer: C
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Why is labor productivity so much lower in developing countries than in developed countries?
a. People concentrate more on theoretical education than on technical experience in developing countries. b. Income per capita is too low in developing countries to support investment in human and physical capital. c. High capital-labor ratio in the developing nations leads to lower productivity. d. Factors of production in developing countries are usually owned by the government.
The statistical analysis of economic phenomena is defined as:
A. confidence intervals. B. econometrics. C. standard error. D. the t-statistic.
(Consider This) Kara was earning $40,000 per year. When her income rose to $60,000 per year, she enjoyed the higher level of consumption for a while, but eventually she was no more happy than when she earned $40,000 (assume prices didn't change over
this time period). Economist Richard Easterlin described this as: A. anchoring. B. the endowment effect. C. irrational economic behavior. D. the hedonic treadmill.
Describe the scope of economic profit in the long run for a perfectly competitive firm
What will be an ideal response?