By Itself, an Increase in the Price of Oil Shifts

question 312

Multiple Choice

By itself, an increase in the price of oil shifts the

• A) aggregate demand curve leftward and does not shift the short- run aggregate supply curve.
• B) short- run aggregate supply curve leftward and does not shift the aggregate demand curve.
• C) short- run aggregate supply curve rightward and does not shift the aggregate demand curve.
• D) aggregate demand curve rightward and does not shift the short- run aggregate supply curve.

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Definitions:

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is true, often denoted by alpha.

One-tailed

Describes tests or confidence intervals that focus on one direction of effect or relationship, either greater than or less than a certain value.

Null Hypothesis

A statement in hypothesis testing that assumes no significant difference or effect exists between certain populations or variables.

Level of Significance

In hypothesis testing, the threshold below which the null hypothesis is rejected, often denoted by alpha.