Multiple Choice
A positive supply shock from falling input prices shifts
A) both the SAS and AD curves rightward.
B) both the SAS and LAS curves leftward.
C) the SAS curve rightward but leaves the LAS curve unchanged.
D) the LAS curve rightward but leaves the SAS curve unchanged.
E) both the SAS and LAS curves rightward.
Correct Answer:

Verified
Correct Answer:
Verified
Q183: The "Yes - Markets Self-Adjust" camp argues
Q184: Unemployment is represented by points on the
Q185: Full employment is represented by points on
Q186: The "Yes - Markets Self-Adjust" camp argues
Q187: A rise in the price level decreases
Q189: The language of output gaps - recessionary
Q190: Aggregate demand increases when government increases taxes.
Q191: According to the law of short-run aggregate
Q192: A recessionary gap most likely comes from<br>A)
Q193: Falling input prices increase aggregate quantity supplied.