The Economy in 2008

question 76

Multiple Choice

The Economy in 2008
In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy.
-Refer to The Economy in 2008.In the short run the increased prices of world commodities

• A)raised both the price level and output.
• B)raised the price level and reduced output.
• C)reduced the price level and raised output.
• D)reduced both the price level and output.