Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Aggregate planned expenditure is less than actual expenditure if real GDP is
A) less than $700 billion. B) more than $800 billion. C) $800 billion. D) less than $800 billion. E) more than $700 billion.
Which of the following is NOT a necessary precondition for economic growth?
A) economic freedom B) democracy C) property rights D) free markets E) ALL of the above are necessary preconditions.
A bank manager tells you that she doesn't create money. She just lends the money that people deposit. Explain why she's wrong
What will be an ideal response?
Economic studies have generally found that professional sports players have salaries that
a. greatly exceed their marginal contribution to a team's revenue stream. b. are approximately equal to their marginal revenue products. c. are about one-half of what they contribute to a team's profitability. d. are less than one-tenth of their marginal revenue products.