If the price level is initially at P1, then the economy will adjust by:
Refer to the graph above
A. Increasing output produced
B. Decreasing the GDP produced
C. Reducing the price level
D. Increasing the total output demanded
A. Increasing output produced
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The "fooling" model was developed by economist
A) Milton Friedman. B) Edward Prescott. C) Robert Lucas, Jr. D) John Maynard Keynes. E) Charles Bogle.
In the United States, a typical worker's income peaks around age
a. 70. b. 60. c. 50. d. 40.
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.
If the quantity of money demanded exceeds the quantity of money supplied, then the:
A. equilibrium interest rate stays the same. B. equilibrium interest rate will increase. C. equilibrium interest rate will decrease. D. effect on the equilibrium interest rate is indeterminate.