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.

Understand the role of ideology, legitimation, dialectics, and subjectivity in maintaining or challenging social systems.

Recognize the importance of totality in analyzing social life and its various interconnected components.

Evaluate the different variations of Neo-Marxism and their attempts to adapt or extend Marxist theory.

Comprehend the criticisms of positivism and how these critiques oppose the view that science and rational thinking can achieve objectivity.

---

Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing banking services to governmental institutions.

Stock Index

An indicator used to measure and report value changes in a selection of stocks, which represents a specific segment of the stock market.

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.