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
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Critics of the U.S. definition of poverty claim that:
A. it is set too low, because of lower food prices relative to essential goods and services. B. it is set too high, because of higher food prices relative to essential goods and services. C. it is set too low, because of lower food prices relative to essential goods and services. D. it is set too high, because of higher food prices relative to essential goods and services.
Which of the following events must result in a higher price in the market for cigars?
a. Demand for cigars increases, and supply of cigars decreases. b. Demand for cigars and supply of cigars both decrease. c. Demand for cigars decreases, and supply of cigars increases. d. Demand for cigars and supply of cigars both increase
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.
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)