Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2.
B. P1 and Y2.
C. P4 and Y2.
D. P1 and Y1.
Answer: B
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According to the graph in the figure above, which year experienced the most rapid change in employment?
A) Year 2 B) Year 3 C) Year 4 D) Year 5
In the simple circular flow model containing just households and business firms, all income is received by households in exchange for
A) consumer expenditures. B) wages. C) labor services. D) product.
Convergence refers to the movement of countries toward
a. the same levels of per capita output growth. b. the same levels of per capita output. c. a constant rate of output growth. d. the same capital-to-labor ratios. e. both b and d.
Which of the following would be inconsistent with the More-Is-Better Principle?
A. Indifference curves with negative slopes B. Indifference curves that cross C. Indifference curves that are L-shaped D. Indifference curves that are parallel to one another