An Increase in the Price of a Resource Such as Oil

question 307

Multiple Choice

An increase in the price of a resource such as oil
I. shifts the aggregate demand curve leftward.
II. shifts the long-run aggregate supply curve rightward.
III. shifts the short-run aggregate supply curve leftward.
IV. increases the price level and decreases real GDP in the short run.

• A) Only I is correct.
• B) Both I and II are correct.
• C) Only III is correct.
• D) Both III and IV are correct.

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Definitions:

Noxious Stimulus

An unpleasant or harmful stimulus that is likely to cause discomfort or damage.

Maladaptive Response

An ineffective or harmful response to environmental stressors, typically preventing healthy adjustment.

Problem Behaviors

Actions or patterns of behavior that are socially unacceptable or harmful to oneself or others.

Punishment

A strategy used in behavior modification involving the application of unpleasant consequences to discourage undesirable behavior.