If the Money Price of a Resource Such as Oil

question 337

Multiple Choice

If the money price of a resource such as oil falls, then the

• A) SAS curve shifts rightward.
• B) SAS curve shifts leftward.
• C) LAS curve shifts leftward.
• D) LAS curve shifts rightward.

---

Definitions:

Money Supply

Refers to the total amount of money—cash, coins, and balances in bank accounts—available in an economy at a specific time.

Classical Macroeconomic Theory

An economic theory that posits that markets function efficiently and that full employment is achieved when economies operate at a state of equilibrium without government intervention.

Nominal Variables

Variables that are measured in terms of money and have not been adjusted for inflation, as opposed to real variables which are inflation-adjusted.

Money Supply

The total amount of money in circulation or in existence within a country's economy.