Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y3.
D. P2 and Y2.
C. P2 and Y3.
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If you were building a macroeconomic model that explores the effect of the increase in interest rates on the inflation rate in Great Britain, interest rates would be an ________ variable and the inflation rate would be an ________ variable
A) endogenous; endogenous B) endogenous; exogenous C) exogenous; exogenous D) exogenous; endogenous
The illegality of organ sales from willing donors to willing recipients is ineffective because:
a. It encourages organ sales b. It discourages wealth creating transactions through the threat of heavy penalty c. It encourages government intervention d. None of the above
In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment. ? log(gdp) = 2.65 + 0.527log(bankcredit) + 0.222FDI (0.13) (0.022) (0.017) ? Which of the following statements is then true?
A. If gdp increases by 1%, bank credit increases by 0.527%, the level of FDI remaining constant. B. If bank credit increases by 1%, gdp increases by 0.527%, the level of FDI remaining constant. C. If gdp increases by 1%, bank credit increases by log(0.527)%, the level of FDI remaining constant. D. If bank credit increases by 1%, gdp increases by log(0.527)%, the level of FDI remaining constant.
Based on the graph showing the effects of a government budget surplus, a budget surplus would lead to ______.
a. a shift in the demand curve for loanable funds to the right
b. a shift in the supply curve for loanable funds to the left
c. a decrease in loanable funds from Q2 to Q1
d. an increase in loanable funds from Q1 to Q2