In the above figure, as the economy adjusts toward equilibrium, the
A) AD curve will shift rightward.
B) SAS curve will shift rightward.
C) AD curve will shift leftward.
D) SAS curve will shift leftward.
D
You might also like to view...
Consider a monopoly facing a demand structure where the price elasticity of demand is ?1.25. The optimal markup factor is:
A. 5 times marginal revenue. B. 0.2 times marginal cost. C. 0.2 times marginal revenue. D. 5 times marginal cost.
A country that has a trade surplus:
A. imports more than it exports. B. sells more goods abroad than it buys from abroad. C. has a negative trade balance. D. buys more goods at home that it buys abroad.
Suppose there was a debate regarding intelligence budgets and the Democrat was arguing for a budget increase from $40 billion to $41 billion and the Republican was arguing for the budget to increase to $45 billion. Further, suppose intelligence salaries and procurement of the same spy systems are project to rise 5%. The Republican accuses the Democrat of proposing a cut to intelligence gathering which, the Democrat insists his plan increases that spending. What is going on here?
A. The Republican is cutting only if you use baseline budgeting. B. Both are proposing cuts. They are both lying, regardless of budgeting technique. C. The Democrat is cutting only if you use current services budgeting. D. Both are proposing increases. The Republican is lying, regardless of budgeting technique.
Refer to the information provided in Table 14.1 below to answer the question that follows. Table 14.1B's Strategy ?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. The Nash equilibrium in the game is
A. (Raise Price, Don't Raise Price). B. (Don't Raise Price, Raise Price). C. (Don't Raise Price, Don't Raise Price). D. Both A and B are correct.