The inflation associated with the oil price shocks in the 1970safter OPEC restricted the supply of oil is an example of

		demand-pull inflation due to a supply shock.
		demand-pull inflation due to a demand shock.
		cost-push inflation due to a demand shock.
		cost-push inflation due to a supply shock.

If initial equilibrium real Gross Domestic Product (GDP) is $400billion, MPC = 0.9, and autonomous investment increases $40billion, equilibrium real Gross Domestic Product (GDP) will be

		$800 billion.
		$360 billion.
		$440 billion.
		$600 billion.