If the Money Prices of Resources Changes

question 164

Multiple Choice

If the money prices of resources changes

• A) the LAS curve shifts.
• B) the SAS curve shifts.
• C) the AD curve shifts.
• D) the macroeconomic equilibrium is unaffected.

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Definitions:

2008-2009 Recession

A severe global economic downturn triggered by the financial crisis, marked by significant declines in consumer wealth, extensive layoffs, and a contraction in economic activity.

Fiscal Policies

Government policies related to taxation and spending that aim to influence the economy.

Political Business Cycle

A theory suggesting that electoral cycles influence economic cycles, with policymakers manipulating the economy to improve re-election chances.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.