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A Crisis in the Middle East Drastically Raises the Price

question 29

Multiple Choice

A crisis in the Middle East drastically raises the price of petroleum. If the aggregate demand curve does not shift, then aggregate supply will --------------------, real GDP will-------------------- , and the price level will--------------------
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Definitions:

Closed-Shop Clause

A provision in a labor agreement requiring all employees to be members of a union as a condition of employment.

Trade Union

An organization formed by workers in a particular trade, industry, or company to protect their rights and interests.

Lawful Strike

A work stoppage initiated by employees that is legal under labor law and typically occurs after failed negotiations.

Collective Agreement

A written contract of employment covering a group of employees who are represented by a union, detailing the terms and conditions of their employment.

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