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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The potential for asymmetric information to bring about a general decline in product quality in an industry is known as the ________ problem
A) moral hazard B) liability C) capture D) lemons
An example of a tax specifically designed to reduce consumption of a good is a tax on:
A. automobiles. B. dairy products. C. gasoline. D. fast food.
Out of approximately 150 million workers in the U.S. economy, what percentage of the total are paid the minimum wage?
a. Less than 2% b. Approximately 5% c. Approximately 8% d. More than 10%
Refer to Table 3.2, which shows some costs and benefits of having your car repaired. What is the marginal benefit of the 4th hour spent on repairs?
A. $450
B. $375
C. $295
D. $920