Refer to Figure 13-2. Ceteris paribus, a decrease in the expected ...

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Refer to Figure 13-2. Ceteris paribus, a decrease in the expected price of an important natural resource would be represented by a movement from
 
  A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.

Question 2

Liquidity increases as we move from the M1 to the M2 definition of the money supply.
 
  Indicate whether the statement is true or false

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Answer to Question 1

A

Answer to Question 2

FALSE