Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:

A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.


Answer: B

Economics

You might also like to view...

Financial intermediaries reduce individual risk because they pool the funds of savers

Indicate whether the statement is true or false

Economics

In the Keynesian model, which curve is vertical?

A) LRAS B) SRAS C) AD D) NS

Economics

Which of the following is NOT an assumption used in deriving a production possibilities curve?

A) The labor force is growing at a constant rate. B) Resources are fully employed. C) Technology is constant. D) The quantity of resources is constant.

Economics

Rent controls often have adverse effects, including

A) too much housing in a community. B) deterioration in the quality of existing rental units. C) too much construction of new rental units in the community. D) income transfers from the poor to landlords.

Economics