Question 1. In the AD-AS model with an upward-sloping AS curve, a decrease in oil prices will: A. increase prices and output. B. increase prices and decrease output. C. decrease prices and increase output. D. decrease prices and output. E. decrease prices but have no effect on output.

Question 1. In the AD-AS model with an upward-sloping AS curve, a decrease in oil prices will: A. increase prices and output. B. increase prices and decrease output. C. decrease prices and increase output. D. decrease prices and output. E. decrease prices but have no effect on output.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 4SCQ: Without looking at Table 19.7, return to Figure 19.10. If we define a recession as a significant...

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Question 1.

In the AD-AS model with an upward-sloping AS curve, a decrease in oil prices will:

A. increase prices and output.

B. increase prices and decrease output.

C. decrease prices and increase output.

D. decrease prices and output.

E. decrease prices but have no effect on output.

Question 2

Improvements in the matching efficiency in the labour market always lead to:

A. lower unemployment rate.

B. lower vacancy rate.

C. higher vacancy rate.

D. no effect on the vacancy rate.

E. Both A and D.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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