Suppose Americans buy inputs from foreigners. When the price of foreign inputs falls, the U.S. SRAS curve __________, which tends to __________the U.S. price level
A) shifts rightward; reduce
B) shifts leftward; increase
C) shifts leftward; reduce
D) remains constant; increase
A
You might also like to view...
A macroeconomic equilibrium occurs when the
A) quantity of real GDP demanded is greater than the quantity of real GDP supplied. B) quantity of real GDP demanded equals the quantity of real GDP supplied and both equal potential GDP. C) quantity of real GDP demanded equals the quantity of real GDP supplied even if they are not equal to potential GDP. D) quantity of real GDP demanded is less than the quantity of real GDP supplied. E) None of the above answers is correct.
The Federal Reserve can increase the money supply by:
A. increasing the discount rate. B. conducting open market sales. C. reducing reserve requirements. D. eliminating deposit insurance.
Marginal revenue is generally __________ for businesses that do not operate under conditions of perfect competition.
A. lower than the price B. higher than the price C. lower than the average cost D. lower than the marginal product
The price of a new textbook increases from $200 to $270, while the price of used copies of the textbook increased from $100 to $125. Other things being equal, we would expect
A. the quantity demanded of the used textbook to increase and the quantity demanded of the new textbook to decrease. B. the demand for the new textbook to increase and the demand for the used textbook to decrease. C. the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase. D. the quantity demanded of both to fall.