Recall Application 3, "How the U

Multiple Choice

Recall Application 3, "How the U.S. Economy has Coped with Oil Price Fluctuations," to answer the following questions:
-According to the application, when the price of oil increases, the aggregate supply curve shifts up because:

A) oil is a by- product of the production processes in the economy.
B) oil is a complement to the production of most goods and services.
C) oil is an input to the production processes in the economy.
D) oil is a major source of export revenues in the economy.