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

question 10

Multiple Choice

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

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

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Definitions:

Homo Erectus

An extinct hominin species that lived from approximately 1.9 million to 140,000 years ago, known for being one of the first to exhibit humanlike walking and use of tools.

Epoch

A significant period in history or in the development of the earth, marked by notable events or characteristics.

Awash River

A major river in Ethiopia, which plays a crucial role in the agriculture, water supply, and ecosystem of the region.

Genus Homo

The genus Homo is a classification for the human species and its closest extinct relatives, characterized by bipedalism, larger brains compared to body size, and complex tool use.