In Macroeconomic Terms, an Increase in the Price of Imported

question 82

Multiple Choice

In macroeconomic terms, an increase in the price of imported oil or a decrease in the availability of oil is an example of a ________.

• A) demand shock
• B) supply shock
• C) monetary shock
• D) refinery shock

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Definitions:

Merchandise Inventory

Goods or products that a retailer, wholesaler, or distributor holds for the purpose of selling to customers.

Gain on Realization

Profit recognized from selling an asset for more than its book value.

Loss or Gain

The financial result from business transactions, investments or other financial events, indicating a profit (gain) or a deficit (loss).

Realization Account

An account used in the process of dissolving a partnership or corporation, where the assets are converted into cash and liabilities are paid off.