Higher Resource Prices Shift the

question 352

Multiple Choice

Higher resource prices shift the

• A) short- run aggregate supply curve leftward, raising the price level and decreasing real GDP so it is less than potential GDP.
• B) short- run aggregate supply curve rightward, raising the price level and decreasing real GDP so it is less than potential GDP.
• C) long- run aggregate supply curve leftward, decreasing real GDP and increasing potential GDP.
• D) short- run aggregate supply curve leftward, raising the price level and decreasing potential GDP.

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Definitions:

National Sales

Sales activities that are conducted within a country's borders, focusing on the distribution and marketing of goods and services to domestic consumers.

Open Road

Sometimes used metaphorically to refer to freedom or the lack of obstacles for actions or endeavors.

Market-Share Liability

A theory under which liability is shared among all firms that manufactured and distributed a particular product during a certain period of time. This theory of liability is used only when the specific source of the harmful product is unidentifiable.

Toxic Chemical

A substance that poses a risk to health or the environment due to its poisonous properties.