In the Short Run,an Increase in the Price of Oil

question 29

Multiple Choice

In the short run,an increase in the price of oil will cause

• A)an increase in output.
• B)a reduction in the price level.
• C)an increase in the interest rate.
• D)all of the above
• E) none of the above

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Definitions:

Possession

The act or state of owning, controlling, or having an item or property in one's physical custody.

Exclusive Use

A clause in a lease or agreement granting one party the sole right to use a property, asset, or service in a specified way.

Rent Escalation Clause

In a lease, a clause that permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant’s commercial business.

Long-Term Leases

Lease agreements that extend for a long period, often exceeding a year, typically used for real estate and heavy equipment.