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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The invisible hand is mostly guided by:
A) costs of production. B) quantity of goods and services sold. C) market prices. D) government intervention.
Regarding IBFs, which of the following is correct?
A) not subject to reserve requirements B) not subject to interest rate regulations C) were created to permit U.S. banking offices to compete with offshore banks without having to use an offshore banking office D) All of the above.
Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton. If the linear demand function for steel takes the form Q = a - 0.9P, what is an appropriate value for the intercept coefficient a?
a = -111 a = 51 a = -51 a = 111
The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased.
Answer the following statement true (T) or false (F)