Question : 71) As a result of OPEC ________ oil prices in : 1227903

71) As a result of OPEC ________ oil prices in 1973 and 1980, real GDP in United States ________.

A) increasing; increased

B) increasing; decreased

C) decreasing; increased

D) decreasing; decreased

E) increasing; did not change

72) Oil price hikes

A) increase aggregate supply.

B) decrease aggregate supply.

C) increase aggregate demand.

D) decrease aggregate demand.

E) increase potential GDP.

73) When OPEC nearly tripled the price of oil in late 1973,

A) U.S. real GDP increased as profits by oil producers increased.

B) U.S. real GDP did not change although the price level rose.

C) the U.S. price level fell because production became too expensive.

D) the U.S. price level rose and real GDP decreased.

E) both U.S. real GDP and the price level increased.

74) At the beginning of 2015, a country is at full-employment. During 2015, oil-producing countries decrease oil production leading to much higher oil prices. The higher oil prices can

A) increase aggregate demand and lead to an expansion.

B) increase aggregate supply and lead to an expansion.

C) decrease aggregate demand and lead to a stagflation.

D) decrease aggregate supply and lead to a stagflation.

E) decrease aggregate demand and lead to a higher price level.

75) If the quantity of real GDP supplied equals the quantity of real GDP demanded, then

A) nominal GDP must equal real GDP.

B) real GDP must equal potential GDP.

C) real GDP must be greater than potential GDP.

D) real GDP might be greater than, equal to, or less than potential GDP.

E) real GDP must be less than potential GDP.

76) An increase in investment ________ aggregate demand, the aggregate demand curve shifts ________ and the economy is in the ________ phase of the business cycle.

A) decreases; rightward; expansion

B) increases; rightward; expansion

C) decreases; leftward; recession

D) increases; rightward; recession

E) increases; leftward; recession

77) If the price of oil rises, the

A) AD curve shifts rightward, real GDP increases, and the price level rises.

B) AS curve shifts leftward, the price level rises, and real GDP decreases.

C) AD curve and the AS curve shift leftward, real GDP decreases, and the price level rises.

D) AD curve and the AS curve shift rightward, the price level rises, and real GDP decreases.

E) AS curve shifts leftward, the price level rises, and real GDP increases.

78) Stagflation is a combination of ________ real GDP and a ________ price level.

A) increasing; rising

B) increasing; falling

C) decreasing; rising

D) decreasing; falling

E) no change in; rising

79) An inflationary gap is created when

A) real GDP is greater than potential GDP.

B) real GDP equal to potential GDP.

C) the inflation rate is less than potential inflation.

D) the price level exceeds the equilibrium price level.

E) potential GDP is greater than real GDP.

80) The economy is at full employment. If aggregate demand increases,

A) an inflationary gap is created and the AS curve shifts leftward as the money wage rate rises.

B) an inflationary gap is created and the AD curve shifts leftward.

C) an inflationary gap is created and potential GDP increases to close the gap.

D) a recessionary gap is created and the AS curve shifts leftward as the money wage rate falls.

E) a recessionary gap is created and the AS curve shifts leftward as the money wage rate rises.