Which of the Following Describes What Would Happen After an Increase

question 159

Multiple Choice

Which of the following describes what would happen after an increase in oil prices?

• A) A downward shift of the aggregate supply curve as unit costs decrease,followed by a gradual increase in the wage as employment increases,leading to a leftward shift of the aggregate supply curve
• B) An upward shift of the aggregate supply curve as unit costs increase,followed by a gradual decrease in the wage as employment decreases,leading to a leftward shift of the aggregate supply curve
• C) An upward shift of the aggregate supply curve as unit costs increase,followed by a gradual decrease in the wage as employment decreases,leading to a rightward shift of the aggregate supply curve
• D) A downward shift of the aggregate supply curve as unit costs decrease,followed by a gradual decrease in the wage as employment decreases,leading to a rightward shift of the aggregate supply curve
• E) An upward shift of the aggregate supply curve as unit costs increase,followed by a gradual decrease in the wage as employment increases,leading to a rightward shift of the aggregate supply curve.

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Definitions:

Meaningful

Having significant, purposeful, or important quality or implication.

Cyclical Theory

Cyclical theory is the idea that certain phenomena or events recur in cycles, often used in the context of economic, social, or historical patterns.

Changing Seasons

The transition periods between the main climatic seasons (spring, summer, autumn, and winter), affecting weather patterns, ecosystems, and human activities.

Ebb and Flow

A metaphorical description of the continual fluctuation or cyclic patterns of change, resembling the movement of tides.