If Oil Prices Increase Then, in the Short Run, Real

question 41

Multiple Choice

If oil prices increase then, in the short run, real GDP will ________ and the price level will________.

• A)decrease; rise
• B)decrease; fall
• C)increase; fall
• D)increase; rise

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Definitions:

Demand Forecasts

are predictions about future consumer demand for products or services, based on historical data, market trends, and analysis, used for planning purposes.

Consumer Demand

Consumer demand refers to the desire and ability of purchasers to acquire goods or services at a given price.

Supply Chain

The entire network of entities, directly or indirectly, fulfilling customer requests, including manufacturers, suppliers, transporters, warehouses, retailers, and customers themselves.

Variability

The lack of consistency or the tendency to vary, especially in the context of supply chain, leading to challenges in predicting demand, lead times, and inventory levels.