A rise in the price of foreign inputs leads to 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.
D
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Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, an increase in the price of shovels will result in
A) fewer shovels being purchased to produce the same number of trenches. B) more workers being hired to produce the same number of trenches. C) the firm wishing to produce more trenches. D) no change in the firm's input mix.
The Fed can ________ in the economy.
A. change the supply of money, but not the interest rates B. change interest rates, but not the supply of money C. change both interest rates and the supply of money D. change neither interest rates nor the supply of money
An increase in the minimum wage will tend to cause which of the following?
A) an upward shift in the WS curve B) a downward shift in the WS curve C) an upward shift in the PS curve D) a downward shift in the PS curve E) none of the above
Under a gold standard in which France defined 1 franc to be worth 1/50th of an ounce of gold, and the U.S. defined $1 to be worth 1/10th of an ounce of gold, then 1 U.S. dollar would exchange for __________ francs.
Fill in the blank(s) with the appropriate word(s).