A rise in the price of oil would be most likely to cause which of the following in the United States?
A) an economic boom
B) an economic slowdown or recession
C) a decrease in the general level of prices
D) an increase in aggregate demand

Question

Quizplus · Accepted Answer

An increase in the price of oil leads to higher production costs and increased prices of goods and services, which then results in decreased spending and possible reduction in economic growth, leading to an economic slowdown or recession.

A Rise in the Price of Oil Would Be Most