If Rapid Increases in Oil Prices Caused Price Levels to Increase

question 144

Multiple Choice

If rapid increases in oil prices caused price levels to increase and real GDP to decrease in the short run,the economy would experience

• A)stagflation.
• B)long-run economic decline.
• C)hyperinflation.
• D)an increase in the natural rate of unemployment.

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Definitions:

Material Goods

Physical objects or possessions that have value, either monetary or sentimental, often acquired to satisfy personal needs or desires.

Confront

To face or deal with a challenging situation or person directly.

Attitude

A relatively enduring set of beliefs, feelings, and behavioral tendencies towards specific people, groups, ideas, or objects.

Extravert

A personality trait characterized by outgoingness, high energy, and a preference for social interaction.