Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. If the economy is at Point A, a sudden increase in the price of oil without any change in the aggregate demand shifts the short-run Phillips curve (SRPC) from
A. SRPC3 to SRPC1.
B. SRPC2 to SRPC1.
C. SRPC1 to SRPC2.
D. SRPC1 to SRPC3.
Answer: C
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When the price of a good decreases,
A) supply increases. B) supply decreases. C) quantity supplied increases. D) quantity supplied decreases.
Monetizing the debt is undesirable given its impact on ________
A) investment B) nominal income C) tariff rates D) prices
Assume a market that has an equilibrium price of $5. If the market price is set at $9, producer surplus:
A. rises for some producers because of the increased price. B. decreases for some producers because of fewer transactions taking place. C. Both A and B are true. D. Neither of these statements is true.
Relative to a perfectly competitive market, as long as the monopolist does not benefit from substantial economies of scale,
a. price and quantity are higher under monopoly b. price and quantity are lower under monopoly c. quantity is higher and price is lower under monopoly d. quantity is lower and price is higher under monopoly e. there are no differences in price and quantity