Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y1.
C. P3 and Y1.
D. P3 and Y2.
Answer: D
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A single-period duopoly firm can choose output level A or B. The firm decides it will produce level A regardless of what the other firm produces. This decision may occur because
A) producing the output level A is a dominant strategy. B) this firm has simply decided to always produce at level A. C) Both A and B are possible. D) None of the above.
It is appropriate to use the supply-and-demand model in which of the following markets?
A) beer market B) car market C) wheat market D) market for breakfast cereal
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What does planned real saving equal when real disposable income equals $1200?
A. 300 B. 0 C. 1140 D. 60
Since 1970, the U.S. economy has experienced ________ recession(s).
A. 2 B. 3 C. 5 D. 6