Suppose the price level rises and the money wage remains constant. This set of changes leads to
A) an upward movement along the LAS curve.
B) an upward movement along the SAS curve.
C) a leftward shift of the SAS curve.
D) a leftward shift of the SAS curve and the LAS curve.
B
You might also like to view...
Two heavy equipment manufacturers might collude in an effort to do all of the following except one. Which is the exception?
a. determine a more advantageous price and quantity b. prevent new entry into the market c. take advantage of the legal benefits that U.S. cartels receive d. increase their combined profits e. predict the behavior of other competitors in the heavy equipment market with greater certainty
Retaliation of trade restrictions can:
What will be an ideal response?
Refer to Exhibit 10-8. The marginal propensity to save (MPS) is
a. 4.00. b. 0.25. c. 0.10. d. 0.90. e. 0.75.
When the percentage change in the quantity supplied is twice the percentage change in price, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.