The Increases in Oil Prices in 1974 Due to OPEC's

question 63

Multiple Choice

The increases in oil prices in 1974 due to OPEC's actions caused the short-run aggregate supply curve to shift to the left.Canada saw increases in both unemployment and inflation as a result.The Bank of Canada could not address both increased unemployment and increased inflation because

• A)expansionary monetary policy which would lower unemployment would further increase inflation.
• B)contractionary monetary policy which would lower inflation would further increase unemployment.
• C)Canadians at the time preferred high unemployment to high inflation.
• D)Both A and B are correct answers.

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Definitions:

ADR

Acronym for Alternative Dispute Resolution, which refers to methods like mediation and arbitration used to settle disputes without traditional litigation.

Negotiation

A process in which parties attempt to settle their dispute voluntarily, with or without attorneys to represent them.

Settlement Agreement

An out-of-court resolution to a legal dispute, agreed to by the parties in writing. A settlement agreement may be reached at any time prior to or during a trial.

Mediator

A neutral third party who facilitates negotiations between disputing parties with the aim of reaching a mutually acceptable agreement.