The Price of a Barrel of Oil Doubled Between 2007

question 3

Multiple Choice

The price of a barrel of oil doubled between 2007 and the middle of 2008.To make matters worse,a financial crisis hit the U.S.economy starting in August of 2007.Which of the following is true of the United Kingdom's experience?

• A)The increase in the price of oil immediately shifted the AS curve to the left.
• B)The financial crisis did not take hold right away so the AD curve did not immediately shift.
• C)Eventually,the Lehman Brothers bankruptcy caused a negative demand shock leading to a further fall in output and an increase in the unemployment rate.
• D)all of the above
• E)none of the above

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Definitions:

Scapegoat Theory

A theory that suggests that individuals or groups unfairly blame others for their own problems or failures, often as a means of diverting attention or responsibility away from themselves.

Outgroups

Groups of people that do not belong to one's own group, which is considered the "in-group", often leading to prejudice against them.

Self-Serving Bias

A cognitive bias where individuals attribute positive outcomes to their own actions and negative outcomes to external factors, protecting self-esteem.

Scapegoat Theory

A social psychology concept that explains the tendency to blame someone else for one's own problems, often as a way of deflecting attention from one's own failures.