When the Price of Oil Falls Unexpectedly, the Equilibrium Price

question 60

Multiple Choice

When the price of oil falls unexpectedly, the equilibrium price level ________ and the unemployment rate ________ in the short run.

• A)rises; falls
• B)rises; rises
• C)falls; falls
• D)falls; rises
• E)remains constant; falls

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Definitions:

Contributions

In accounting, refers to the amounts paid into a company by the owners or shareholders for equity.

Joint Operation

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, where each participant is jointly responsible for profits, losses, and costs.

Supply Of Services

The action of providing services to consumers or businesses, which can involve physical labor or intellectual tasks.

Profit Recognition

The accounting process of recording revenue when it is earned and realizable, in accordance with the principle of revenue recognition.