For an Oil-Importing Country Such as the United States, the Immediate

Multiple Choice

For an oil-importing country such as the United States, the immediate effect of a supply shock caused by an increase in the price of imported oil would tend to be

A) an increase in real output and a decrease in the general level of prices.
B) a decrease in real output and an increase in the general level of prices.
C) a decrease in both the general level of prices and real output.
D) an increase in both the general level of prices and real output.