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

Economics

You might also like to view...

Why are some insurance companies interested in programs for nationwide disaster insurance for floods, earthquakes, and hurricanes?

What will be an ideal response?

Economics

Which of the following inputs can be changed in the short run?

A) Machinery B) Land owned C) Office Space D) Labor employed

Economics

If you withdraw currency from your bank savings account, you are

A) increasing M1, decreasing M2. B) increasing both M1 and M2. C) decreasing both M1 and M2. D) not affecting M1 or M2. E) increasing M1 but not affecting M2.

Economics

Keynes hypothesized that the transactions component of money demand was primarily determined by the level of

A) interest rates. B) velocity. C) income. D) stock market prices.

Economics