In the Short Run in the Keynesian Model,an Oil Price

question 20

Multiple Choice

In the short run in the Keynesian model,an oil price shock would leave the economy with a ________ level of output and a ________ real interest rate.

• A)higher;lower
• B)lower;higher
• C)lower;lower
• D)higher;higher

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Definitions:

Coupling Phase

The stage in connecting two rotating shafts or units where alignment and engagement are optimized for power transmission.

Variable Pitch

Referring to the capability of adjusting the angle or pitch of blades in fans, propellers, or turbines to control performance.