In 1986, OPEC countries increased their production of oil. What was the result?
A) The price level rose.
B) Aggregate supply shifted right.
C) Unemployment rose.
D) Stagflation occurred.

Question

Quizplus · Accepted Answer

When OPEC countries increased their oil production in 1986, it led to a decrease in oil prices worldwide. This decrease in oil prices reduced production costs for many businesses, effectively increasing the aggregate supply in the economy by shifting the aggregate supply curve to the right.

In 1986, OPEC Countries Increased Their Production of Oil