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

question 99

Multiple Choice

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

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases
• E)remains constant; increases

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Definitions:

Stable

Characterized by constancy, lack of change, and resistance to disruption over time.

Attachment Bonds

Emotional bonds that form between individuals, particularly between a child and caregiver, crucial for personal development and social connections.

Collectivist

Pertaining to cultural or societal norms that emphasize the needs, goals, and views of the group over that of the individual.

Individualist

A person who prioritizes personal independence and self-reliance, often in contrast to collectivist cultures.