By Mid -2008, U

Multiple Choice

By mid -2008, U.S. real GDP continued to grow despite increases in oil prices from about $34 per barrel in 2004 to over $140 per barrel. One reason for this is

A) there is a lag of about two years between oil price increases and declines in real GDP.
B) there has been a 60 percent increase in the number of automobiles powered by electricity and other non -oil related sources of fuel.
C) Since the 1970s the U.S. economy has reduced the amount of oil used per dollar of GDP by about 60 percent.
D) most firms have switched from oil to natural gas as a source of energy to produce goods and services.