Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
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In the balance-of-payments accounts, the statistical discrepancy
A) equals the capital account balance minus the current account balance. B) equals the current account balance minus the capital account balance. C) probably reflects hidden capital flows. D) must equal zero.
Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as
A) the law of demand. B) the law of supply. C) ceteris paribus. D) equilibrium.
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . Now the exchange rate changes to 90 yen = $1 . Then the:
a. machine would now cost more dollars. b. machine would now cost the Japanese citizen less yen. c. machine would now cost less dollars. d. machine would now cost the Japanese citizen more yen. e. yen has depreciated in value.
Which of the following would increase the supply of childcare services?
a. An increase number of childcare facilities b. An increase in the cost of certification for workers in this field c. An increase in the price of childcare d. none of the above