The oil shock of 2007-2008 saw the price of oil rising from less than $60 a barrel in March 2007 to over $145 a barrel in July 2008, and decreasing again to just over $30 a barrel in December 2008
Assuming the economy was at potential GDP prior to the oil shock, the increase in the price of oil, such as what occurred between March 2007 and July 2008, acts as a negative supply shock, causing the inflation rate to ________ and the output gap to ________. A) increase; become negative
B) increase; become positive
C) decrease; become negative
D) decrease; become positive
A
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The roots of the Civil War (1861–1865) can be traced to the colonial period of U.S. history. The ratification of the 10th amendment of the U.S. Constitution brings all issues connected to the Civil War to an end
Indicate whether the statement is true or false
Refer to the above figure. A perfectly competitive firm that is in long-run equilibrium will be operating
A) with positive economic profits. B) at a quantity greater than point E. C) at a quantity less than point E. D) at point E.