Suppose the Economy Is Initially in Equilibrium, and Then an Energy

question 94

Multiple Choice

Suppose the economy is initially in equilibrium, and then an energy shock occurs, such as when OPEC raised oil prices in the 1970s.In terms of inflation and unemployment, which of the following is likely to result?  

• A) Prices and unemployment will likely rise. 
• B) Prices and unemployment will likely fall. 
• C) Prices will rise and unemployment will likely fall. 
• D) Prices will fall and unemployment will likely rise.

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Definitions:

Openings

Natural or manufactured spaces that allow passage or access from one area to another.

Bladder

A hollow organ in the lower abdomen that stores urine from the kidneys before it is excreted from the body.

Glomerular Capsule

The glomerular capsule, also known as Bowman's capsule, is a cup-like sac at the beginning of the tubular component of a nephron in the mammalian kidney that performs the first step in the filtration of blood to form urine.

Renocytes

Specialized cells found in certain invertebrates that are involved in the excretion process.