The Three Oil Shocks the U

Multiple Choice

The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.

A) a decline in real wages due to an upward shift of the production function
B) an increase in the rental price of capital along with a healthy stock market response
C) a decline in real wages due to a downward shift of the MPL curve
D) an increase in the rental price of capital due to an upward shift of the production function
E) none of the above