Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1.
B. P4 and Y2.
C. P5 and Y1.
D. P5 and Y2.
Answer: D
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Which of the following is not a threat to bricks-and-mortar video rental stores?
a. on-demand movies delivered by broadband cable b. rental services that deliver DVDs by mail c. digital movies and TV shows available on Wal-Mart's Web site d. None of the answers is a threat. e. All of the answers are threats.
Sadie is getting ready to go to work where she earns $70 a day as a day laborer. Her friend Caroline calls her and asks her to go swimming with sharks for the day. Sadie decides to go with her. Sadie's choice implies that her opportunity cost of working is:
A. equal to $70. B. less than $70. C. greater than $70. D. Cannot say without more information.
Which of the following factors is not a barrier limiting the entry of potential competitors into a market?
A. legally enforced patent rights B. an inelastic demand for a product C. economies of scale D. ownership of a vital resource
The long-run aggregate supply curve is
A. downward sloping. B. upward sloping. C. vertical. D. horizontal.