If oil prices increase, then in the short run, real GDP will and the price level will
)
A) decrease; rise
B) increase; fall
C) increase; rise
D) decrease; fall

Name: If oil prices increase, then in the short run, real GDP will and the price level will ) A) decrease; rise B) increase; fall C) increase; rise D) decrease; fall
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Question

Quizplus · Accepted Answer

In the short run, an increase in oil prices raises production costs, leading to a decrease in real GDP and an increase in the price level due to cost-push inflation.

If Oil Prices Increase, Then in the Short Run, Real