Video rental stores in cities are an illustration of:

In the context of aggregate demand and aggregate supply, the wealth effect refers to the idea that, when the price level decreases, the real wealth of households

a. increases and as a result consumption spending increases. This effect contributes to the downward slope of the aggregate-demand curve. b. decreases and as a result consumption spending increases. This effect contributes to the upward slope of the aggregate-supply curve. c. increases and as a result households increase their money holdings; in turn, interest rates increase and investment spending decreases. This effect contributes to the downward slope of the aggregate-demand curve. d. decreases and as a result households increase their money holdings; in turn, interest rates increase and investment spending decreases. This effect contributes to the upward slope of the aggregate-supply curve.

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

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