What Impact Did the Soaring Oil Prices of 2007 and the First

question 1

Multiple Choice

What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?

• A) They increased SRAS, causing real output and employment to increase.
• B) They reduced SRAS, causing real output and employment to increase.
• C) They increased SRAS, causing real output and employment to decline.
• D) They reduced SRAS, causing real output and employment to decline.

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Definitions:

Portion Sizes

Refers to the amount of food served or consumed in one eating occasion.

Hunger

A sensation caused by a lack of food, leading to the desire to eat.

Positive Energy Balance

A state in which calorie intake exceeds calorie expenditure, resulting in weight gain.

Calories

Units of energy that measure the amount of energy supplied by food and beverages and the amount expended by the body in activities.