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

Economics

You might also like to view...

In the figure above, the rightward shift from the demand for loanable funds curve DLF1 to the demand for loanable funds curve DLF2, could be the result of

A) a decrease in expected profit. B) a fall in the interest rate. C) an increase in wealth. D) a rise in the interest rate. E) an increase in expected profit.

Economics

Long-run producer surplus in a perfectly competitive industry accrues mainly to:

a. suppliers of inputs with inelastic supply curves. b. suppliers of inputs with elastic supply curves. c. firms' owners. d. marginal consumers.

Economics

The aggregate supply curve is

a. a curve showing the quantities of total output that business will purchase for investment at various price levels. b. a curve showing the quantities of total output that will be offered for sale at various price levels. c. a curve showing the quantities of goods and services that households will provide at various price levels. d. one point on the aggregate expenditure curve.

Economics

Since 1999, ________ U.S. manufacturing jobs may have been lost to Chinese imports, and trade with China has ________ throughout the United States

A) more than 2 million; created other jobs B) more than 2 million; not created any additional jobs C) very few; created more than 2 million jobs D) very few; not created any additional jobs

Economics