A Large Increase in Oil Prices Is an Example Of

question 88

Multiple Choice

A large increase in oil prices is an example of:

• A)a positive inflation shock.
• B)a negative inflation shock.
• C)inflation inertia.
• D)excessive aggregate spending.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Total Revenue

is the overall amount of money generated by a business from its activities, including sales of goods or services, before any expenses are deducted.

Labor

Any mental or physical exertion on the part of a human being that is used in the production of a good or service. One of the four economic resources.

Purely Competitive

A market structure characterized by many sellers offering identical products, where no single seller can influence the market price.