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:

Principle of Individualism

The philosophical stance emphasizing the moral worth and autonomous rights of the individual over collective entities.

Basic Human Rights

Fundamental rights believed to belong to every person, including the right to life, liberty, freedom of thought and expression, and equality before the law.

Profit and Morality

The examination of the ethical considerations involved in pursuing profit, including how businesses balance their desire for financial gain with moral and ethical responsibilities.

Rationalizations

The process of explaining or justifying behavior or an attitude with logical reasons, even if these are not appropriate.