During 2003-2007, the Price of Crude Oil Increased Substantially on the World

question 57

Multiple Choice

During 2003-2007, the price of crude oil increased substantially on the world market. Other things constant, how will an unanticipated increase in oil prices influence the general level of prices and real output of oil-importing nations such as the United States and Japan?

• A) Both real output and the general level of prices will decrease.
• B) Both real output and the general level of prices will increase.
• C) Real output will increase, and the general level of prices will decrease.
• D) Real output will decrease, and the general level of prices will increase.

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Definitions:

Slaveholding Border States

Refers to the U.S. states on the border between the North and South that permitted slavery during the Civil War but did not secede from the Union.

Radical Republicans

A faction of American politicians within the Republican Party of the United States from about 1854 until the end of Reconstruction in 1877, who believed in the immediate emancipation of the slaves and harsh repercussions for the Southern states.

Emancipation Proclamation

Declaration issued by President Abraham Lincoln; the preliminary proclamation on September 22, 1862, freed the slaves in areas under Confederate control as of January 1, 1863, the date of the final proclamation, which also authorized the enrollment of black soldiers into the Union army.

Delayed

Postponed or made later than originally planned or expected.