A Crisis in the Middle East Drastically Raises the Price

question 159

Multiple Choice

A crisis in the Middle East drastically raises the price of petroleum.If the aggregate demand curve does not shift,then aggregate supply will ________,real GDP will ________,and the price level will ________.

• A)increase;remain the same;increase
• B)decrease;decrease;increase
• C)increase;increase;increase
• D)remain the same;increase;increase
• E)decrease;remain the same;decrease

Comprehend how price mechanisms and incentives impact the conservation and discovery of resources.

Grasp the role of technological advancements in increasing the supply of natural resources.

Learn about the dynamics of energy demand in the short run versus the long run.

Understand the concept of "proved reserves" and how it relates to resource availability.

---

Definitions:

Note Payable

A financial obligation or loan evidenced by a written promissory note specifying payment terms.

Discounted Note

A promissory note whose proceeds are issued at a price lower than its face value, with the difference compensating the lender for risk.

360-Day Year

An accounting convention that simplifies interest calculation by assuming all months have 30 days, resulting in a 360-day year.

Interest Charged

The cost incurred for borrowing money or the amount earned on deposited funds, usually expressed as a percentage of the principal.