Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.


Answer: B

Economics

You might also like to view...

If it is not profitable for more than one firm to be in an industry, we have an example of

A) monopoly due to ownership of key resources. B) monopoly due to governmental entry restrictions. C) monopoly due to economies of scale. D) pure competition.

Economics

The resource-based view indicates that firms exhibit different performances within the same industry because

a. there is less buyer power b. there are economies of scale present c. some firms have superior resources d. there is less competition

Economics

Given freedom of movement for both goods and resources. If Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that

What will be an ideal response?

Economics

Suppose a long stretch of beach with many possible public and private entrances is such that it is impossible to control access and, as a result, gets very crowded on summer days. Which recognized characteristic of goods does not hold

A. rivalry. B. morality. C. lucidity. D. exclusivity.

Economics