In 1973,the Organization of Petroleum Exporting Countries (OPEC)engineered a Quadrupling

Multiple Choice

In 1973,the Organization of Petroleum Exporting Countries (OPEC) engineered a quadrupling of oil prices by restricting oil production.Which of the following is an appropriate description of this negative supply shock?

A) The AS curve likely shifted to the left and output likely fell because of this adverse shock.
B) In the short-run there was a movement out of general equilibrium leading to an increase in inflation as a likely result of this adverse shock.
C) In the short-run there was a movement out of general equilibrium leading to an increase in unemployment as a likely result of this adverse shock.
D) all of the above
E) none of the above