Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1.
B. P4 and Y2.
C. P5 and Y1.
D. P5 and Y2.
Answer: D
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Which of the following is an outcome of economic variables not moving in sync with inflation?
a. unintended redistributions of purchasing power b. intentional redistributions of purchasing power c. better long-term planning d. decrease in blurred price signals
Market price is determined by
A. both supply and demand B. supply only C. demand only D. neither supply nor demand
If two nominal exchange rates are given as 4 shekel/dollar and 0.711 dinar/dollar, so 1 dollar can buy either 4 shekels or 0.711 dinars, then each Jordanian dinar is worth ________ Israeli shekels, and each shekel is worth ________ dinars.
A. 5.623; 0.178 B. 0.178; 5.623 C. 1.96; 0.51 D. 0.51; 1.96
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. Initially after the payroll tax is imposed, there will be
A. an equilibrium in the labor market. B. an excess supply of labor of 150 units. C. an excess supply of labor or 100 units. D. an excess demand for labor of 100 units.