A rise in wage rates
A) causes the AD curve to shift leftward.
B) causes the short-run aggregate supply (SRAS) curve to shift rightward.
C) does not affect the present position of the SRAS curve.
D) causes the AD curve to shift rightward.
E) causes the SRAS curve to shift leftward.
E
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Refer to Figure 9-1. Under autarky, the consumer surplus is
A) $195. B) $260. C) $300. D) $555.
The vertical classical aggregate supply curve reflects that
a. money wages adjust proportionally with the price level. b. real wages are always the same. c. aggregate output is always the same. d. None of the above. e. Both b and c.
An essential characteristic of a perfectly competitive market is:
A. sellers are selling unique products. B. buyers have complete control over the market price and sellers have none. C. buyers and sellers have no control over the market price. D. sellers have complete control over the market price and buyers have none.
The quantity theory of money can explain hyperinflations but not moderate inflation
a. True b. False Indicate whether the statement is true or false