Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P5 and Y1.
B. P5 and Y2.
C. P4 and Y1.
D. P4 and Y2.
B. P5 and Y2.
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State three country characteristics that encourage and three that discourage economic integration among developing countries
What will be an ideal response?
Under perfect competition, no matter how much output is produced, the total revenue curve is:
a. a positively-sloped line. b. a negatively-sloped line. c. a horizontal straight line. d. a U-shaped curve. e. a hill-shaped curve.
If demand is unitary elastic, a price decrease results in
a. an increase in total seller's total revenue b. no change in total seller's total revenue c. a decrease in total expenditure on the good d. a decrease in quantity demanded of the good e. an increase in supply of the good
Which of the following would cause stagflation?
a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts right d. aggregate supply shifts left