At the Beginning of 2017,a Country Is at Full-Employment

question 69

Multiple Choice

At the beginning of 2017,a country is at full-employment.During 2017,oil-producing countries decrease oil production leading to much higher oil prices.The higher oil prices can

• A)decrease aggregate demand and lead to a stagflation.
• B)decrease aggregate supply and lead to a stagflation.
• C)decrease aggregate demand and lead to a higher price level.
• D)increase aggregate supply and lead to an expansion.
• E)increase aggregate demand and lead to an expansion.

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Definitions:

Dumping

the practice of exporting goods to another country at a price below the normal charge in the home market, often considered unfair competition.

Market Share

The share of a market dominated by a specific company or product, typically represented as a percent of the overall sales within that market.

Cost of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.