Refer to the above graph. Which factor will shift AD1 to AD3?
A. An increase in productivity.
B. A decrease in consumer wealth.
C. An increase in real interest rates.
D. An increase in real wages.
Answer: B
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Firms such as Taco Bell and Chipotle operate hundreds of restaurants nationwide while firms such as El Pollo Loco operates only in five states. How would you characterize these stores?
A) Taco Bell and Chipotle are duopolists while El Pollo Loco is a monopolistic competitor. B) They are all monopolistic competitors. C) Taco Bell and Chipotle are duopolists while El Pollo Loco is an oligopolist. D) Taco Bell and Chipotle are oligopolists while El Pollo Loco is a monopolistic competitor.
Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%. B) Workers and firms expect inflation to be 1%. C) The short-run Phillips curve will shift to the left. D) The short-run Phillips curve will shift to the right. E) The economy will move from C to A.
An increase in real interest rates will increase saving and decrease aggregate demand, other things equal
a. True b. False Indicate whether the statement is true or false
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.