The Increase in World Oil Prices in 1990 Initially

question 88

Multiple Choice

The increase in world oil prices in 1990 initially

• A) caused the AS curve to shift upward as wage rates quickly adjusted
• B) increased the level of GDP associated with high price levels
• C) shifted the aggregate expenditure line upward
• D) caused the AS curve to shift upward due to higher costs per unit of output
• E) caused the AD curve to shift leftward due to an increasing interest rate

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Definitions:

Chebysheff's Theorem

A statistical theorem that provides a minimum probability for how much data falls within a certain number of standard deviations from the mean, applicable for any data distribution.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Variance

Variance measures the dispersion of a set of data points around their mean value, indicating how spread out the data is.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.