Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y1.
C. P3 and Y1.
D. P3 and Y2.
Answer: D
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The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.
Answer the following statement true (T) or false (F)
According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A) The country's total production will fall. B) The production possibilities frontier will shift inward in the future. C) Fewer goods will be produced for consumption today. D) Future economic growth will decline.
In a situation of mutual interdependence and identical products, managers of oligopolistic firms ________ a response to their rivals' actions and ________ compete on price.
A) do not have; should B) have; should C) do not have; should not D) have; should not
When a good with equally elastic demand and supply is taxed, the incidence of the tax is borne Group of answer choices
A) entirely by consumers. B) entirely by producers. C) by both consumers and producers. D) mostly by consumers. E) mostly by producers.