Which of the following would be the most likely effect of an increase in the world price of oil that would create a sectoral shift?
A) There would be a decrease in unemployment, and the decrease would be greater in a country with unemployment insurance than in one without.
B) There would be a decrease in unemployment, but the decrease would be smaller in a country with unemployment insurance than in one without.
C) There would be an increase in unemployment, and the increase would be greater in a country with unemployment insurance than in one without.
D) There would be an increase in unemployment, but the increase would be smaller in a country with unemployment insurance than in one without.
Correct Answer:
Verified
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