Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
You might also like to view...
Jill and Jed have individual demand curves for tennis rackets given in the table above and are the only two demanders in the market. What is the market quantity demanded at the price of $30?
A) 2 B) 5 C) 11 D) 18
Which type of unemployment does not contribute to the natural rate of unemployment?
A. Frictional B. Structural C. Real-wage D. Cyclical
Intra-industry trade refers:
a. to imports and exports within the same industry. b. to imports and exports originating in different industries. c. to international trade patterns predicted by the Heckscher-Ohlin model. d. to Ricardian comparative advantage.
Bond markets allow firms to pursue
a. equity financing. b. debt financing. c. limited growth policies. d. government loans and subsidy programmes