19. Average prices in Canukada are 200, real GDP is 30, and the money supply is 500. An increase in the money supply to 700 leads to average prices of

A) 250.

B) 280.

C) 300.

D) 240.

E) none of the above answers.

20. Which isnotpart of the story of cost-push inflation?

A) increasing costs push up output prices

B) demand for output decreases relative to supply

C) increasing quantity of money

D) businesses have unsold products and services

E) consumers have less income to spend

21. The Phillips Curve is consistent with the story of ________ inflation.

A) demand-pull

B) demand-push

C) cost-push

D) cost-pull

E) push-pull

22. Which doesnotchange Canada's short-run aggregate supply?

A) Prince Edward Island is submerged by an offshore earthquake.

B) Perfect weather all across Canada improves crop yields for all farmers.

C) People around the country upgrade their human capital by readingEconomics for Life.

D) The Government of Canada passes new regulations reducing the imports of advanced Japanese robots by Canadian businesses.

E) American consumers stop buying Canadian beef during an outbreak of Mad Cow Disease.

23. A positive supply shock from improving technology shifts

A) both theSASandADcurves rightward.

B) both theSASandLAScurves leftward.

C) theSAScurve rightward but leaves theLAScurve unchanged.

D) theLAScurve rightward but leaves theSAScurve unchanged.

E) both theSASandLAScurves rightward.

24. Canadian aggregate demand increases immediately when

A) Honda Canada adds another shift of workers at its Ontario factory.

B) Blue Jays baseball fans visit Boston to see a game.

C) a Canadian high school student goes to Harvard.

D) an economist at York University buys 6 cases of wine from Chile.

E) Yankee baseball fans visit Toronto to see a game.

25. Which media headline describes a shift of theSAScurve only?

A) "Decreased consumer spending may lead to recession."

B) "Increased consumer spending is expected to lead to inflation, with no change in real GDP."

C) "Higher wage settlements may lead to inflation."

D) "Faster growth may be due to more women entering the labour force."

E) "Recent tornadoes destroyed factories in Edmonton and Calgary."