Suppose the supply of Malaysian rubber increases. If U.S. producers purchase this rubber as an input, in the United States, this would cause a
A) rightward shift of the AD curve.
B) leftward shift of the AD curve.
C) rightward shift of the SRAS curve.
D) leftward shift of the SRAS curve.
C
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Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because
a. union agreements prevent any firm from altering the wage rate b. each firm is ignorant of the market wage rate c. the demand for labor is a derived demand d. each firm hires a very small portion of the labor services available e. the wage rate is regulated by the government
Shift to the left or right for supply: cost of input rise
What will be an ideal response?
Related to the Economics in Practice on p. 476: The paradox of thrift is that all people deciding to save more could lead to them saving less.
Answer the following statement true (T) or false (F)