1. If a war interrupted oil production, which of the following would most likely

Question

1. If a war interrupted oil production, which of the following would most likely happen in the short run
a) unit costs would decrease shifting the aggregate supply curve upward
b) unit costs would decrease causing an upward movement along the aggregate supply curve
c) unit costs would increase shifting the aggregate supp;y curve downward
d) unit costs would increase shifing the aggregate supply curve upward

2. Which of the following can lead to Stagflaion
a) a derease in tge money supply
b) a decrease in autonomous consumption
c) bad weather shocks
d) an increase in government spending
e) a decrease in oil prices

3. The aggregate demand curve identifies the level of aggregate production corresponding to a change in the price level.
a) True
b) False

4. A negative demand shock would lead to a decline in both the price level and output in the short-run.
a) True
b) False

5. A output is greater than the full-employment level of output, we can expect wages to rise over time.
a) True
b) false

Explanation / Answer

1.d
2.d
3.a
4.a
5.a

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