Refer to the above figure. If the relevant aggregate demand curve is AD1, then the economy is experiencing
A) full employment.
B) an inflationary ga
A
You might also like to view...
According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle
The increase in sales due to this subsidy is an example of which element of the economic way of thinking? A) responding to incentives B) using assumptions to simplify C) thinking at the margin D) isolating variables
Of the following, the largest is
A) money market deposit accounts. B) demand deposits. C) M1. D) M2.
If good x is available free of charge, then
a. good x must be provided by nature. b. good x must be provided by the government. c. the private market cannot ensure an efficient allocation of resources in the market for good x. d. government policy is incapable of increasing total surplus in the market for good x.
(Advanced analysis) Answer the question on the basis of the following information. The demand for commodity X is represented by the equation P = 100 - 2Q and supply by the equation P = 10 + 4Q. Refer to the given information. If demand changed from P =
100 - 2Q to P = 130 - Q, the new equilibrium quantity is: A. 15. B. 20. C. 24. D. 32.