Figure 10-18
Beginning from long-run equilibrium at point E1 in , the aggregate demand curve shifts to AD2. The real GDP and price level (CPI) in short-run equilibrium will be
a.
$10 billion and 200.
b.
$10 billion and 150.
c.
$10 billion and 100.
d.
$4 billion and 150.
d
You might also like to view...
People's willingness to buy the PC or Mac format of computer software depends on how popular the software format is among other consumers. This is an example of
A) a cartel. B) an opportunity cost. C) a network effect. D) the prisoners' dilemma.
The Proclamation of 1763 and the Quebec Act of 1774 benefited existing farmers with large land holdings because these laws led to
a. decreased farming competition. b. falling land prices. c. lower taxes on farm land. d. increased supplies of western farm land. e. All of the above.
The limits of the terms of trade are determined by the:
a. distribution costs in each country. b. stock of foreign exchange in each country. c. average total costs of producing the commodities in each country. d. opportunity costs in each country. e. currency exchange rate between the trading partners.
The amount of revenues that sellers actually receive over and above the minimum acceptable amount that they are willing to receive for selling a product is called
A. production costs. B. producers' supply. C. consumer surplus. D. producer surplus.