The Price of a Barrel of Oil Doubled Between 2007

question 91

Multiple Choice

The price of a barrel of oil doubled between 2007 and the middle of 2008. To make matters worse,a financial crisis hit the U.S. economy starting in August of 2007. Which of the following is TRUE of the United Kingdom's experience?

• A)The increase in the price of oil immediately shifted the AS curve to the left.
• B)The financial crisis did not take hold right away so the AD curve did not immediately shift.
• C)Eventually,the Lehman Brothers bankruptcy caused a negative demand shock leading to a further fall in output and an increase in the unemployment rate.
• D)All of the above.
• E)None of the above.

---

Definitions:

Connectionist Model

A computational model of cognitive processes, based on the concept that mental phenomena can be described by interconnected networks of simple units.

Memory Model

A theoretical framework describing how memory processes information, including encoding, storage, and retrieval.

Specific Pattern

A distinct arrangement or sequence of elements that is recognizable and differentiates it from other arrangements or sequences.

Misinformation Effect

A phenomenon where a person's recall of episodic memories becomes less accurate due to post-event information.