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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Value added equals the market price of the firm's product minus
A) the price of intermediate goods. B) wages and salaries. C) the price of all factors of production. D) depreciation on plant and equipment.
Which of the following best describes the assumption that monetarists make regarding velocity?
a. It is fairly predictable in the short run and certainly in the long run. b. It is not possible to predict velocity in the short or long run. c. It is variable in the long run but predictable in the short run. d. It is constant in the long run but variable in the short run.
Under a regressive tax system, the marginal tax rate increases as income increases
a. True b. False Indicate whether the statement is true or false
The dilemma in a prisoner's dilemma is that:
A. the players would be better off if they both played a dominated strategy. B. the outcome is random, so players are uncertain about which strategy to play. C. only one player has a dominant strategy, but the other player is uncertain about what to do. D. the players may be trapped in a game they don't know how to play.