Exhibit 17-3 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-3, if people behave according to adaptive expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the economy to move:
A. from E1 to E2 initially and then eventually move back to E1.
B. directly from E1 to E2 and then remain at E2.
C. directly from E1 to E3 and then remain at E3.
D. from E1 to E2 initially and then eventually move to E3.
Answer: D
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According to the figure shown:
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Refer to Figure 2-4. A movement from ________ is the result of advancements in plastic production technology
A) V to X B) Y to Z C) W to X D) Z to W
A perfectly competitive firm's short-run supply curve is:
a. the segment of the marginal cost curve above average fixed cost. b. the upward-sloping segment of the marginal cost curve. c. both the segment of the marginal cost curve above average fixed cost and the segment of the marginal cost curve above the minimum level of average variable cost. d. the segment of the marginal cost curve above the minimum level of average variable cost.