Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.
Answer: B
You might also like to view...
Refer to Figure 10.1. This scenario is representative of a(n)
A) prisoner's dilemma game. B) battle of the sexes game. C) pure coordination game. D) assurance game.
If a country's national government wants to stimulate spending in the economy, it should:
A) decrease taxes and increase government spending. B) increase taxes and decrease government spending. C) increase taxes and government spending. D) decrease taxes and government spending.
To deal with difficulties in administering pension funds, Congress in 1974 passed the
A) Corrupt Pension Fund Reform Act. B) Securities and Exchange Act. C) Employee Retirement Income Security Act. D) Social Security Act.
Many economic variables are classified according to their relation to the business cycle. What are the principal categories? Variables in which category(ies) are of greatest help in forecasting changes in the economy?
What will be an ideal response?