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

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Which of the following events must result in a higher price in the market for cigars?

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Refer to the graph shown. A movement from D to C is most likely to be caused by:

A. an increase in aggregate demand. B. an increase in input prices. C. a reduction in sales taxes. D. an increase in import prices.

Economics

Between the second quarter of 2006 and the first quarter of 2009, the value of housing wealth decreased by about $7 trillion.

Answer the following statement true (T) or false (F)

Economics