Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y1.
C. P3 and Y1.
D. P3 and Y2.
Answer: D
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The above table shows the distribution of wealth and income in Miseria. With respect to income, the richest twenty percent of the population earn
A) 90 percent of the income. B) 11 times as much as the poorest twenty percent. C) 9 times as much as the poorest twenty percent. D) just as much as the second richest twenty percent.
People are often heard saying, "She makes good money." An economic interpretation of this statement would be that
a. she has an honest job. b. she makes money that is not counterfeit. c. she has a high income. d. there is little inflation.
To be able to enforce the rules of a free-trade area, goods from outside the region imported into the lowest-tariff nation cannot be shipped ________ into another nation in the area.
a. with no transportation costs b. without a labor certificate c. with no customs inspection d. duty free
Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
A. increased government spending B. higher taxes C. a balanced-budget reduction in both spending and taxes D. an expansion in the money supply