In a two-country world, an increase in foreign input prices, ceteris paribus,
A) shifts the SRAS curve leftward, causing the price level to increase.
B) shifts the SRAS curve leftward, causing the price level to decrease.
C) shifts the SRAS curve rightward, causing the price level to increase.
D) shifts the SRAS curve rightward, causing the price level to decrease.
E) does not affect the SRAS curve or the price level.
A
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Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in: a. the exchange rate
b. the unemployment rate. c. fiscal spending. d. consumer demand. e. the price level.
For society as a whole, the optimal amount of pollution control exists when: a. the marginal cost of pollution reduction is equal to the marginal benefit of the pollution reduction. b. firms are allowed to produce as much pollution as necessary to make the goods people want. c. the marginal costs of pollution clean up exceed the benefits
d. no pollution is permitted at all.