If the Price of Oil Rises,the

question 254

Multiple Choice

If the price of oil rises,the

• A)AD curve shifts rightward,real GDP increases,and the price level rises.
• B)AS curve shifts leftward,the price level rises,and real GDP decreases.
• C)AD curve and the AS curve shift leftward,real GDP decreases,and the price level rises.
• D)AD curve and the AS curve shift rightward,the price level rises,and real GDP decreases.
• E)AS curve shifts leftward,the price level rises,and real GDP increases.

---

Definitions:

Raw Materials Inventory

The total cost of all the raw materials that are used in production but have not yet been processed into finished goods.

Raw Materials Purchases

The total cost a company incurs for acquiring the raw materials needed in the production process.

Budgeted Balance Sheet

A projected financial statement showing the expected financial position of a company at a future date, taking into account its assets, liabilities, and equity.

Retained Earnings

Retained earnings are the portion of a company's profits not distributed as dividends to shareholders but reinvested in the business or kept as reserve.