An Increase in the Price of a Resource Such as Oil

question 412

Multiple Choice

An increase in the price of a resource such as oil
I. shifts the aggregate demand curve leftward.
II. shifts the long- run aggregate supply curve rightward.
III. shifts the short- run aggregate supply curve leftward.
IV. increases the price level and decreases real GDP in the short run.

• A) Only I is correct.
• B) Both III and IV are correct.
• C) Only III is correct.
• D) Both I and II are correct.

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Definitions:

Sadness

An emotional state characterized by feelings of disappointment, grief, or hopelessness, often triggered by upsetting experiences.

Misattribution of Arousal

A psychological phenomenon where a person incorrectly attributes the source of their emotional or physical arousal to the wrong cause.

Two-factor

A concept or phenomenon that involves two distinct factors, components, or conditions for its occurrence or explanation.

Circumplex Model

A model describing human emotions as existing in a two-dimensional space, with levels of arousal and valence defining the axes.