Author Question: Which of the following best describes the effect on the aggregate supply curve if political ... (Read 45 times)

kshipps · **on:** Jun 29, 2018

Which of the following best describes the effect on the aggregate supply curve if political negotiations result in a substantial decrease in the price of oil?

A) There is no change to the AS curve.
B) The AS curve does not shift but there is a downward movement along it.
C) The AS curve shifts leftward.
D) The AS curve does not shift but there is an upward movement along it.
E) The AS curve shifts rightward.

Question 2

Refer to Figure 18.4. With a tariff or quota, what is the equilibrium price of gloves in Duckland?

A) 8 B) 9 C) 10 D) 11