In Figure 17-3 above, SAS0 must shift to SAS1 when
A) the actual price level rises.
B) the expected price level rises.
C) AD0 shifts to AD1.
D) the nominal money supply rises.
B
You might also like to view...
Suppose notebooks are produced by a competitive constant-cost industry. Which of the following must cause Nanna's Notebooks to exit the industry in the long run?
a. Nanna's is notified of a rent increase, but her competitors' rents are unchanged. b. A fire destroys half of Nanna's inventory. c. A photographer wins a $10,000 judgment from a lawsuit charging that Nanna's used his photos on notebook covers without permission. d. The price of cardboard used in notebook production rises.
When the government bans a good it:
A. increases surplus more than any other solution to the nonexcludability problem. B. is an easy, but often ineffective, solution to the nonexcludability problem. C. creates a more efficient solution than any other to the nonexcludability problem. D. is the easiest and most effective solution to the nonexcludability problem.
Is the equation of exchange an economic model?
a. Yes, it is a simple but powerful model. b. No, economic models cannot be equations. c. No, it is merely an arithmetic statement. d. Yes, it is a cause-and-effect model.
Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Commitment problems will be:
A. largely avoided in Altruism, but prevalent in Avarice. B. prevalent on both islands. C. largely avoided in Avarice, but prevalent in Altruism. D. largely avoided on both islands.