Assuming That the SRAS Curve Is Upward Sloping,which of the Following

question 155

Multiple Choice

Assuming that the SRAS curve is upward sloping,which of the following statements represents a correct and sequentially accurate economic explanation?

• A) The demand for bonds falls,the price of bonds falls,the interest rate rises,investment spending declines,the AD curve shifts to the left,the price level declines and Real GDP decreases.
• B) The demand for bonds rises,the price of bonds rises,the interest rate rises,investment spending declines,the AD curve shifts to the left,the price level declines and Real GDP decreases.
• C) The supply of bonds rises,the price of bonds falls,the interest rate falls,investment spending rises,the AD curve shifts to the right,the price level declines and Real GDP decreases.
• D) The supply of bonds falls,the price of bonds rises,the interest rate falls,investment spending rises,the AD curve shifts to the right,the price level declines and Real GDP increases.

---

Definitions:

One Buyer

A market condition known as a monopsony, where there is only one buyer for a particular product or service, giving that buyer significant control over prices.

Marginal Revenue

The extra revenue obtained from the sale of an additional unit of a product or service.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Elastic

A characteristic of demand or supply where the quantity demanded or supplied responds significantly to price changes.