Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.
Answer: B
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What two variables are determined in an aggregate supply-aggregate demand figure? Is the slope of the short-run aggregate supply curve positive or negative? Is the slope of the aggregate demand curve positive or negative?
What will be an ideal response?
Horizontal equity is achieved when taxes are collected from those who benefit from the government expenditure of the tax revenue
Indicate whether the statement is true or false
Individuals in favor of privatization of Social Security believe that it would allow people to:
a. evade the exorbitant rates of Social Security taxes. b. substitute purchases of stocks and other financial assets for a portion of their Social Security taxes. c. lower their medical bill by taking extra precaution and care for their health. d. experience a lower inflation in healthcare services.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.