The United States SRAS Curve May Shift to the Left

question 17

Multiple Choice

The United States SRAS curve may shift to the left if we ____________________ Malaysia and the dollar ________________ against the Malaysian ringgit.

• A)buy raw materials from;appreciates
• B)buy raw materials from;depreciates
• C)sell finished goods to;appreciates
• D)sell finished goods to;depreciates

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Definitions:

Purchasing Power

The worth of a currency represented by how much goods or services can be purchased with one unit of that currency.

Recognition Lag

The time delay between when an economic problem or shock occurs and when it is recognized or identified by policymakers.

Political Lag

The delay between a need for policy action being identified and the government implementing the response, often due to bureaucratic or political reasons.

Decision Lag

The time taken between identifying an economic issue and the implementation of policy to address it.