A reduction in world oil supplies is likely to cause
A) an increase in aggregate demand and a decrease in the equilibrium price level.
B) a decrease in equilibrium price level and an increase in real Gross Domestic Product (GDP).
C) an increase in equilibrium price level and an increase in real Gross Domestic Product (GDP).
D) a reduction in aggregate supply, a rise in the equilibrium price level, and a fall in real Gross Domestic Product (GDP).
D
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According to economist Abba Lerner (1903-1982), fiscal and monetary policy is analogous to:
A. automobile brakes. B. a steering wheel in an automobile. C. a string that can be pushed or pulled. D. highway guard rails.
Hedging a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.
Answer the following statement true (T) or false (F)