If There Is an Increase in the Price of Oil

question 85

Multiple Choice

If there is an increase in the price of oil, then

• A)unemployment rises.If the central bank tries to counter this increase, inflation rises.
• B)unemployment rises.If the central bank tries to counter this increase, inflation falls.
• C)unemployment falls.If the central bank tries to counter this decrease, inflation falls.
• D)unemployment falls.If the central bank tries to counter this decrease, inflation rises.

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Definitions:

Schachter's Two-factor

A theory of emotion that states emotions are composed of two factors: physiological arousal and cognitive label, both of which are necessary to experience emotion.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily responses occur simultaneously, rather than one causing the other.

Attributions

Explanations or reasons given for why things happen, especially in terms of people's behaviors and outcomes.