Which of the following describes what would happen after an increase in oil prices?
a. A downward shift of the aggregate supply curve as unit costs decrease, followed by a gradual increase in the wage as employment increases, leading to a leftward shift of the aggregate supply curve
b. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment decreases, leading to a leftward shift of the aggregate supply curve
c. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment decreases, leading to a rightward shift of the aggregate supply curve
d. A downward shift of the aggregate supply curve as unit costs decrease, followed by a gradual decrease in the wage as employment decreases, leading to a rightward shift of the aggregate supply curve
e. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment increases, leading to a rightward shift of the aggregate supply curve
C
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Tacit collusion occurs in industries that
a. are monopolistically competitive b. contain price leaders c. experience rapid technological change d. are regulated e. produce very differentiated products
Government failure occurs when government intervention fails to improve economic outcomes or makes them worse.
Answer the following statement true (T) or false (F)