According to aggregate demand and supply analysis,the rising oil prices coupled with the global financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease

Question

Quizplus · Accepted Answer

Rising oil prices and the global financial crisis would lead to increased production costs and decreased spending, respectively. This would shift the aggregate supply curve to the left and the aggregate demand curve to the left as well, leading to higher unemployment and lower levels of real aggregate output.

According to Aggregate Demand and Supply Analysis,the Rising Oil Prices