Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
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George is offered an investment option by his friend. He asks George for $6,900 and offers to repay him $12,990 after a period of ten years
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Based on the answer above, the price for bus rides _____________ and the quantity demanded for bus rides ____________
a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease