After an Unexpected ________ in the Price of Oil,the Long-Run

question 268

Multiple Choice

After an unexpected ________ in the price of oil,the long-run adjustment decreases the price level and ________ the unemployment rate as they return to their original levels.

• A)increase; increases
• B)increase; decreases
• C)decrease; increases
• D)decrease; decreases

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Insolvent Buyer

An individual or entity that cannot meet financial obligations or pay debts as they become due.

Reclaim Goods

The process by which a seller or creditor regains possession of goods from a buyer due to nonpayment or breach of contract.

Consequential Damages

Refers to indirect damages that arise not from a breach of contract itself but as a foreseeable result of the breach.