Refer to the graphs above. Which of the following best represents a positive demand shock when prices are flexible?





A.

The shift from D2 to D3 in graph B



B.

The shift from D2 to D3 in graph A



C.

The shift from D2 to D1 in graph B



D.

The shift from D2 to D1 in graph A


A.
The shift from D2 to D3 in graph B

Economics

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Government spending is an injection in the sense that it

A. increases the amount of total spending. B. increases the size of the federal deficit. C. decreases the amount of household saving. D. decreases the amount of taxes paid.

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Rational decision making involves

A. choosing the cheapest option. B. choosing the highest-quality option. C. choosing the option that best helps you realize your goals, given your resources. D. avoiding choices that involve scarce resources.

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It would be impossible to have an unlevered bank.

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

Economics