Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.
Answer: B
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The decline in the US manufacturing sector was the result of:
a. increasing productivity in the manufacturing sector. b. the increasing ability of consumers to purchase foreign manufactured goods more cheaply. c. faster growth of the service sector. d. All of the above are correct. e. Only b and c are correct.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer contracts with suppliers regardless of ISO 900 . status d. Smokers get the worse life insurance rates as non-smokers
Government rules and regulations can, at times,
A) higher transactions costs. B) lower transactions costs. C) better management. D) all of these choices.
How do taxes distort the incentives of buyers and sellers in a market?