The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.

Question

Quizplus · Accepted Answer

The three oil shocks led to a decrease in the supply of oil, which caused inflation and a decrease in real wages due to a shift down in the marginal product of labor curve. There is no evidence to suggest that there was an increase in the rental price of capital or an upward shift of the production function, and the stock market response varied across the different shocks.

The Three Oil Shocks the U