________ could result in a recession because it would ________.
A)A rise in the price of oil;shift the AS curve to the left.
B)An increase in investment;shift the AD curve to the right.
C)A tax cut;shift the AS curve to the left.
D)An increase in the quantity of money;shift the AS curve to the right.
E)An increase in government expenditures on goods and services;shift the AD curve to the right.

Question

Quizplus · Accepted Answer

A rise in the price of oil would increase production costs for firms, leading to a decrease in aggregate supply (AS) and a leftward shift of the AS curve. This shift would lead to higher prices and lower output, potentially causing a recession. Choices B, C, D, and E could all have various effects on the economy, but are not necessarily associated with a risk of recession.

________ Could Result in a Recession Because It Would ________

Could Result in a Recession Because It Would