Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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Which of the following is not true in the long-run?
a. There are no variable costs. b. There are no fixed costs. c. Total costs equal variable costs. d. Identical firms will make zero profits.
Which Federal Reserve Bank president is always on the Federal Open Market Committee?
A) New York B) Chicago C) St. Louis D) Boston
Many autoworkers are unionized. Which of the following methods can help them achieve higher wages? I. Training that increases union members' marginal product II. A publicity campaign promoting purchase of union-made automobile
A) I only B) II only C) I and II D) Neither I nor II
Homer's Donut Shoppe has the production function q = 10L + 20L2 - 5L3. The marginal product of labor is
A) MP = 10 + 40L -15L2 B) MP = 10 + 20L -5L2 C) MP = 10L D) MP = 10 + 20L