The increase in world oil prices in 1990 initially
a. caused the AS curve to shift upward as wage rates quickly adjusted
b. increased the level of GDP associated with high price levels
c. shifted the aggregate expenditure line upward
d. caused the AS curve to shift upward due to higher costs per unit of output
e. caused the AD curve to shift leftward due to an increasing interest rate
D
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The process by which new product or production methods are introduced is called the Industrial Revolution.
Answer the following statement true (T) or false (F)
Which of the following is not an assumption of the decision-making process followed by consumers to maximize utility?
A. The consumer does not consider the prices of the products. B. The consumer behaves rationally. C. The consumer can rank his preferences. D. The consumer has a limited income.