Question 10 (1.00 points)
Reference: F11061
Refer to the above diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after" curves. Other things equal, a decrease in resource prices is depicted by:
a. panel (A) only.
b. panel (B) only.
c. panel (C) only
d. panels (B) and (C).
Sorry, we are not privy to your text and see no diagram.
Sra
Reference: F11061
Refer to the above diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after" curves. Other things equal, inflation is absent in:
Answer
panel (A) only.
panel (B) only.
panel (C) only
panels (A) and (C).
panel (c) only
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To determine which panel represents a decrease in resource prices, we need to understand the relationship between resource prices and the aggregate demand (AD) and aggregate supply (AS) curves.
In panel (A), there is no change in the AD or AS curves. Therefore, it does not depict a decrease in resource prices.
In panel (B), the AD curve shifts to the right, while the AS curve remains unchanged. This indicates an increase in aggregate demand, which is typically caused by factors like increased consumer spending or government intervention. Therefore, panel (B) does not represent a decrease in resource prices.
In panel (C), the AS curve shifts to the right, while the AD curve remains unchanged. This shift indicates an increase in aggregate supply, which can be caused by factors like technological advancements or decreases in resource prices. Therefore, panel (C) represents a decrease in resource prices.
Based on this analysis, the correct answer is c. panel (C) only.