Suppose an Economy Is Initially in Equilibrium and There Is

question 71

Multiple Choice

Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices. Which of the following is the most likely result?

• A) a growth in real GDP
• B) price stability
• C) full employment output
• D) stagflation
• E) deflation

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Definitions:

Ergs

Basic, instinctual drive forces that motivate behaviors essential to survival, such as hunger and sex.

Sentiments

Deep feelings or emotions that influence an individual's attitudes and actions toward certain ideas, objects, or people.

Dynamic Motivating

The process of being driven to fulfill changing needs, desires, and goals, which is fluid and adapts over time.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are said to share.