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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