Suppose the economy is initially in long-run equilibrium. The Fed decides to sell bondssell bonds. In the short-run, this contractionary monetary policy will cause: A. A shift from SRAS 1SRAS1 to SRAS 2SRAS2 and a movement to point A, with a higher price level and the same output. B. A shift from AD 2AD2 to AD 1AD1 and a movement to point D, with a lower price level and lower output. C. A shift from AD 1AD1 to AD 2AD2 and a movement to point B, with a higher price level and higher output. D. A shift from SRAS 2SRAS2 to SRAS 1SRAS1 and a movement to point B, with a lower price level and higher output.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.