Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P1 and Y1.
D. P4 and Y2.
A. P1 and Y2.
You might also like to view...
Refer to the figure below. What is the price elasticity of demand when the price of rice is $6 per pound? 
A. 0.5 B. 3 C. 2 D. 0.67
Which of the following is NOT a problem caused by black markets?
A) Legally banned goods are traded in black markets. B) Black markets pose a threat to legitimate businesses. C) Black markets lead to an inefficient use of society's resources. D) Black markets lead to a fall in the demand for goods.
Gold and silver have historically been the most common form of commodity money
a. True b. False Indicate whether the statement is true or false
The price index for a market basket of goods can be found by
A. dividing the value of the market basket by the rate of inflation. B. multiplying the base-year cost of the basket by the current-year cost of the basket divided by 100. C. dividing the current-year value of the market basket by the base-year value of the basket and multiplying the result by 100. D. multiplying the value of the market basket by the rate of inflation.