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

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Definitions:

Spike Suppression

Techniques or devices used to protect electronic circuits from sudden transient voltages, which could cause damage or malfunction.

Metal Oxide Varistor

A voltage-dependent resistor with a nonlinear variance, used to protect electrical circuits from voltage spikes.

Inductance

The property of an electrical conductor by which a change in current flowing through it induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Wire Resistance

The electrical resistance of a wire, determined by its material, length, and cross-sectional area, affecting the flow of electric current through it.