Suppose the Economy Is Initially in Equilibrium and Then an Energy

question 150

Multiple Choice

Suppose the economy is initially in equilibrium and then an energy shock occurs,such as when OPEC raised oil prices.Which of the following is likely to result?

• A)Both the price level and aggregate output will rise.
• B)Both aggregate output and the price level will fall.
• C)Employment will rise.
• D)Stagflation.
• E)The price level will fall.

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Definitions:

Mass Communication

The process by which information is transmitted to a large audience, typically through the use of media technology such as television, radio, and the internet.

Mass Media

Various forms of media, including television, radio, newspapers, and the Internet, that reach large audiences and have a significant influence on public opinion and culture.

Correlation Function

Media’s role in filtering and making comprehensible the huge daily volume of news stories and issues.

Postmodern Societies

Societies characterized by skepticism towards grand narratives and ideologies, embracing pluralism, diversity, and the questioning of traditional values.