With an Upward Sloping SAS Curve, an Expansionary Monetary Policy

question 201

Multiple Choice

With an upward sloping SAS curve, an expansionary monetary policy that affects the price level but not real output could be the result of a shift of:

• A)both the AD and SAS curves.
• B)only the AD curve.
• C)only the SAS curve.
• D)neither the SAS curve nor the AD curve.

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Definitions:

Refusal to Supply

An act whereby a business decides not to sell or provide goods or services to another business or individual.

Competition Act

Legislation aimed at promoting fair competition in the market by regulating anti-competitive practices.

Bait-and-Switch

A deceptive marketing practice where customers are lured by an advertised deal that is too good to refuse and then are pressured into purchasing a more expensive item or service.

Competition Act

A law designed to regulate competitive practices in the marketplace, prevent monopolies, and protect consumer interests by promoting fair trade and competition.