Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
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Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. VC rise by $1,800 b. VC rise by $0 c. VC rise by $300 d. VC rise by $1,500
Refer to the graph shown. Which price combination is consistent with the budget line shown?
A. $2 per bagel, $2 per croissant B. $3 per bagel, $2 per croissant C. $2 per bagel, $4 per croissant D. $6 per bagel, $3 per croissant
Inflation is
A. A decrease in the price of all goods and services. B. Included in the calculation of real GDP. C. The increase in the market value of a product that takes place at each stage of the production process. D. An increase in the average level of prices of goods and services.
Which of the following is true?
A. In an infinitely repeated game, collusion is always a Nash equilibrium. B. In a finitely repeated game with a certain end period, collusion is unlikely because effective punishments cannot be used during any time period. C. All of the statements associated with this question are correct. D. None of the answers is correct.