The Economy in 2008

Multiple Choice

The Economy in 2008
In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy.
-Refer to the Economy in 2008.In the short-run the housing and financial crises

A) raised both the price level and output.
B) raised the price level and reduced output.
C) reduced the price level and raised output.
D) reduced both the price level and output.