Multiple Choice
Suppose the economy is initially in equilibrium and then an energy shock occurs,such as when OPEC raised oil prices.Which of the following is likely to result?
A) Both the price level and aggregate output will rise.
B) Both aggregate output and the price level will fall.
C) Employment will rise.
D) Stagflation.
E) The price level will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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