Suppose the price of a natural resource like oil falls. What will be the effect on SRAS curve?
A. Movement to the left along the AS curve
B. AS curve will shift to the left
C. Movement to the right along the AS curve
D. AS curve will shift to the right
Answer: D. AS curve will shift to the right
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Identify the two losses of efficiency associated with the imposition of a tariff
What will be an ideal response?
A rise in interest rates tends to contract the economy by appreciating the currency and reducing net exports. Provide the reasoning behind this conclusion
Use the above figure. When the budget line rotates from "c" to "b"
A. fewer units of J and more units of K will be purchased. B. more units of J and more units of K will be purchased. C. more units of J and fewer units of K will be purchased. D. fewer units of J and fewer units of K will be purchased.
Twenty-eight countries in Europe have eliminated all tariffs with each other. This group of countries is known as the
A) European Union. B) United Federation of Europe. C) Gruppo Euro. D) European Free Trade Association.