A Simultaneous Rightward Shift in SRAS and Leftward Shift in AD

question 125

Multiple Choice

A simultaneous rightward shift in SRAS and leftward shift in AD may come from the dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

• A)depreciating;rise
• B)depreciating;fall
• C)appreciating;rise
• D)appreciating;fall

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Definitions:

MRS

An abbreviation for Marginal Rate of Substitution, which is the rate at which a consumer is willing to exchange quantities of one good for another while maintaining the same level of utility.

Price Ratio

The proportionate comparison or ratio of the prices of two different goods or services.

Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.

Remedies

Legal means through which a right is enforced or the violation of a right is prevented, redressed, or compensated.