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, the changes in the price of oil between 1997 and 1998 were examples of _______, while the changes in the price of oil in the early 1970s were examples of _______.

A) negative supply shocks; positive supply shocks
B) positive supply shocks; negative supply shocks
C) positive demand shocks; negative demand shocks
D) negative demand shocks; positive demand shocks