Which of the following statements represents a correct and sequentially accurate economic explanation?
A) Wage rates rise, SRAS rises, and the SRAS curve shifts to the left.
B) The prices of nonlabor inputs rise, SRAS decreases, and the SRAS curve shifts to the right.
C) Labor productivity rises, SRAS increases, and the SRAS curve shifts to the right.
D) An adverse supply shock hits, SRAS decreases, and the SRAS curve shifts to the right.
E) a and c
C
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Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16. The benefit to Matt of driving to campus to buy the concert ticket last week was:
A. $9 B. $4 C. $16 D. $2
The quantity of good M is measured along the vertical axis, and the quantity of good N is measured along the horizontal axis. If the prices of both goods M and N declines by 50% each, then the budget line
A. shifts inward to the left by 50%. B. rotates clockwise by 180 degrees. C. shifts outward to the right by 100%. D. shifts outward to the right by 50%.