Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
You might also like to view...
In order to be binding, a price ceiling
A) must be high enough for firms to earn a profit. B) must coincide with the free market equilibrium price. C) must lie below the free market equilibrium price. D) must lie above the free market equilibrium price.
Which of the following programs provides food aid?
a. SNAP b. EITC c. TANF d. Medicaid
Usury laws carry the potential of hurting
A. borrowers. B. lenders. C. borrowers and lenders. D. government.
If the value of the multiplier is smaller, the economy
A. becomes less stable because automatic stabilizers have a larger impact. B. becomes more stable because automatic stabilizers have a larger impact. C. becomes more volatile because automatic stabilizers have a lesser impact. D. is subject to larger fluctuations because automatic stabilizers have no impact.