An Increase in the Price of Oil Will Cause

question 59

Multiple Choice

An increase in the price of oil will cause

• A) a movement down the SRAS curve.
• B) a movement up the SRAS curve.
• C) a leftward shift in the SRAS curve.
• D) a rightward shift in the SRAS curve.
• E) no change regarding the SRAS curve.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenues.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, prepared during the accounting cycle to ensure debits equal credits.

Financial Statement Column(s)

Refers to the categorized sections within financial statements that display associated financial data, such as assets, liabilities, revenues, and expenses.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.