The Inflation Associated with the Oil Price Shocks in the 1970s

question 54

Multiple Choice

The inflation associated with the oil price shocks in the 1970s after OPEC restricted the supply of oil is an example of

• A) cost-push inflation due to a supply shock.
• B) cost-push inflation due to a demand shock.
• C) demand-pull inflation due to a demand shock.
• D) demand-pull inflation due to a supply shock.

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Definitions:

EPSPs

Excitatory PostSynaptic Potentials (EPSPs) are changes in membrane potential that increase the likelihood of generating a postsynaptic action potential.

Axon Hillock

The cone-shaped area of a neuron where the cell body transitions to the axon, and from which action potentials are initiated.

Democracy

A form of government in which power is vested in the hands of the people, either directly or through elected representatives.

EPSPs

Excitatory Postsynaptic Potentials, which are temporary increases in postsynaptic membrane potential due to the flow of positively charged ions into the postsynaptic cell, making it more likely to fire an action potential.