Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2.
B. P1 and Y2.
C. P4 and Y2.
D. P1 and Y1.
Answer: B
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The short-run Phillips curve is ________, and the long-run Phillips curve is ________
A) downward sloping; downward sloping B) downward sloping; vertical C) vertical; downward sloping D) vertical; upward sloping E) upward sloping; vertical
A zero percent unemployment rate
A) is the only efficient unemployment rate. B) is one of the economic goals of the Canadian government. C) is not consistent with the notion of full employment. D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. E) would alleviate scarcity
What is scarcity, and why is it a fundamental concept in economics?
What will be an ideal response?
Products produced in oligopoly markets are always differentiated.
Answer the following statement true (T) or false (F)