If households and firms expect higher rates of inflation, the ________ curve will shift ________.
A. SRAS; downward
B. AD; until it becomes vertical
C. SRAS; upward
D. AD; rightward
Answer: C
You might also like to view...
Refer to Figure 15-5. In the figure above, the movement from point A to point B in the money market would be caused by
A) a decrease in real GDP. B) an open market sale of Treasury securities by the Federal Reserve. C) an increase in the required reserve ratio by the Federal Reserve. D) an increase in the price level.
"Input-output" macroeconomics stresses that a change in nominal aggregate demand ________ produces an equal-proportional change in every firm's marginal cost, so that firms should consider indexing their price to nominal aggregate demand a very
________ pricing strategy. A) need not, safe B) need not, risky C) must, safe D) must, risky
Equilibrium price must decrease when demand
a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. b. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. c. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. d. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.
Which of the following is used as an antitrust tool that focuses on the structure of industry?
A. Prohibiting mergers and acquisitions. B. Price regulation. C. Profit regulation. D. Forbidding business practices such as advertising.