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...
Generally, official poverty measures ignore
A. the impact of taxes. B. the value of in-kind transfers. C. the value of medical expenses that are paid by the government. D. all of these answer options are correct.
The demand curve is: QD = 500 - 1/2 P
a. Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? b. Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic? c. Find the point at which point elasticity is equal to -1.
Other things constant, if the interest rate rises, people prefer to hold: a. less money because the opportunity cost of holding money has increased
b. more money because the opportunity cost of holding money has increased. c. less money because the opportunity cost of holding money has declined. d. more money because the opportunity cost of holding money has declined. e. the same amount of money because the opportunity cost of holding money is zero.
Say's law promises that each and every firm in the economy will be able to sell all of the particular output it produces
a. True b. False