Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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World-class models receive significant economic rents because
A) their talents and abilities are in fixed supply. B) there is a shortage of world-class models. C) there is a surplus of world-class models. D) there is no equilibrium quantity of world-class models.
The following does not represent a threat to internal validity of randomized controlled experiments:
A) attrition. B) failure to follow the treatment protocol. C) experimental effects. D) a large sample size.
Estimates by economists of the natural rate of unemployment in the U.S. economy in the early 2000s run at about
a. 3.5% to 4.5%. b. 4.5% to 5.5%. c. 5.5% to 6.5%. d. 6.5% to 7.5%.
Unemployment that is of a short duration to allow a person time to find a new job is