Which of the Following Best Depicts the Short-Run Effect of a Price

question 59

Multiple Choice

Which of the following best depicts the short-run effect of a price shock due to a large increase in oil prices?

• A)The IA line shifts up, causing interest rates to rise, which causes the AD curve to shift to the right.
• B)The IA line shifts up, causing interest rates to rise, which causes a leftward movement along the AD curve.
• C)The AD curve shifts to the left, causing interest rates to rise, which causes the IA line to shift down.
• D)The IA line shifts down, causing interest rates to rise, which causes a leftward movement along the AD curve.
• E)The IA line shifts up, causing interest rates to rise, which causes the AD curve to shift to the left.

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Definitions:

Tort

A legal term for a civil wrong or breach of duty to another person, resulting in loss or harm, and subject to compensation or legal remedy.

Criminal Act

An action or omission that constitutes an offense that may be prosecuted by the state and is punishable by law.

Exculpatory Clauses

Contractual provisions that release one party from liability for wrongdoing towards another, often found in service agreements.

Misrepresentations

False or misleading statements or assertions that can lead someone to believe in a reality that is not true, potentially affecting decisions or contracts.