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

Economics

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Regarding IBFs, which of the following is correct?

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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

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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)

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