Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1.
B. P4 and Y2.
C. P5 and Y1.
D. P5 and Y2.
Answer: D
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Suppose the total population of an economy is 150 million, the labor force is 100 million, and the unemployment is 94 million. The unemployment rate is _____
a. 6 percent b. 80 percent c. 94 percent d. 10 percent e. 15 percent
Core CPI is a price index that only looks at the prices of food and energy and ignores the prices of all other goods and services
a. True b. False Indicate whether the statement is true or false
A long-run expansion in capacity
A. Moves the economy to a point closer to its existing production possibilities curve. B. Shifts the production possibilities curve rightward. C. Moves the economy upward to the left along its existing production possibilities curve. D. Shifts the production possibilities curve leftward.
Raising the minimum wage would:
A. help some workers while hurting others. B. help all workers and hurt all firms. C. hurt all workers and help some consumers. D. help workers and help consumers.