Refer to the Article Summary. The unexpected increase in the supply of oil mentioned in the article summary resulted in a decrease in the price of oil
After an unexpected decrease in the price of oil, the long-run adjustment ________ the price level and ________ the unemployment rate as they return to their original levels.
A) increases; increases B) decreases; increases
C) increases; decreases D) decreases; decreases
A
You might also like to view...
If the money multiplier is 3.5, a $10 billion increase in the monetary base
A) increases the quantity of money by $35 billion. B) increases the quantity of money by $2.86 billion. C) increases the quantity of money by $3.5 billion. D) increases the quantity of money by $10 billion.
Which of the following is true of an externality?
a. An externality enhances the efficiency of the market system. b. An externality is not an economic problem because it is external to the market. c. An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service. d. An externality accrues to someone who had nothing to do with the production or consumption of a good or service. e. An externality refers to some unexpected change in the equilibrium price or quantity of a product.