A Rapid Increase in the Price of Oil Will Tend

question 240

Multiple Choice

A rapid increase in the price of oil will tend to

• A)shift short-run aggregate supply to the left.
• B)shift long-run aggregate supply to the left.
• C)shift long-run aggregate supply to the right.
• D)shift aggregate demand to the right.

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Definitions:

Decision Maker

An individual or group responsible for making choices after considering the consequences of various actions.

Irrational

Behavior or thoughts not based on logical reasoning, clear thinking, or aligned with factual evidence.

Economic Models

Simplified frameworks used to illustrate economic processes or theories through mathematical equations or diagrams.

Rationally

Acting based on reason or logic, typically in a way that maximizes self-interest or advantage within certain constraints or information.