A positive supply shock causes a leftward shift in the SRAS curve
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The money demand curve will shift to the right if:
A. ATM machines are introduced. B. real income increases. C. the nominal interest rate increases. D. the price level decreases.
The systemic costs and burdens that inflation imposes upon a society are almost entirely the result of
A) government price controls. B) inability to predict its rate and timing. C) the fact that no one can ultimately gain from higher prices because everyone is a consumer. D) the lag between the rise of wage costs and the subsequent rise of prices. E) the lag between the rise of prices and the subsequent rise of wages.
If an increase in the excise tax imposed on cigarettes pushes the price per pack up by 20 percent, and the quantity sold declines by 8 percent as a result, the price elasticity of demand for cigarettes is equal to
a. -0.2. b. -0.4. c. -0.8. d. -5.
Which of the following statements is TRUE of static tax analysis?
A) A government receives lower tax revenues by raising the tax rate. B) A government receives higher tax revenues by raising the tax rate. C) A government cannot change it tax revenues by changing the tax rate. D) A change in the tax rate can raise or lower tax revenues, depending on other factors.