Use the following graph to answer the next question.
In the figure, AD1 and AS1 represent the original aggregate supply and demand curves. If Q1 is full-employment output, then the long-run aggregate supply curve is located at output level ________.
A. Q2
B. Q1
C. Q3
D. None of these choices are correct.
Answer: B
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A researcher claims that the standards of law and order are the basis of the economic prosperity of a certain country. This argument is based on the:
A) geography hypothesis. B) location hypothesis. C) culture hypothesis. D) institutions hypothesis.
Progressive taxation serves which of the following goals of economic welfare policy?
A. Social insurance B. Economic growth C. Progressive taxation has all of these goals aimed at reducing inequality. D. Redistribution of wealth
When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living
a. True b. False Indicate whether the statement is true or false
Explain why companies that choose low-pollution technologies will find it hard to survive in a competitive industry.
What will be an ideal response?