Suppose OPEC Is Unable to Come to an Agreement Regarding

question 122

Multiple Choice

Suppose OPEC is unable to come to an agreement regarding oil production and as a result the price of oil drops. Which of the following would you expect to occur as a result of this favorable supply shock?

• A)The short-run Phillips curve will shift to the right and the unemployment rate will increase.
• B)The short-run Phillips curve will shift to the right and the unemployment rate will decrease.
• C)The short-run Phillips curve will shift to the left and the unemployment rate will increase.
• D)The short-run Phillips curve will shift to the left and the unemployment rate will decrease.

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Definitions:

Deposit Slip

A document provided by a bank for a depositor to fill out, detailing a deposit transaction's specifics such as date and amount.

Net Deposit

The total amount of money deposited in an account after all deductions, charges, or withdrawals have been subtracted.

Check Register

A record maintained by the account holder documenting checks written, deposits made, and the current balance of a checking account.

Cash Balance

The total amount of money in the form of cash or cash equivalents that a company or an individual possesses at a given time.