A temporary decrease in the price of oil would be considered a:

A. short-run supply shock.
B. long-run supply shock.
C. demand shock.
D. The changing price of oil would not affect any of these.

A. short-run supply shock.

Economics

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What are the two tools of fiscal policy that governments can use to affect the level of aggregate demand?

A) taxation and controlling imports B) taxation and controlling exports C) government spending and taxation D) government spending and technology improvements

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The fact that a firm is a price-setter does not ensure it will make a positive economic profit in the short run and over time

Indicate whether the statement is true or false

Economics