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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Ten years after the Rio Summit,
a. the World Summit on Sustainable Development was held in Johannesburg b. the Rio Declaration was adopted c. worldwide interest in the summit’s motivating principles had waned d. participating nations agreed to abandon the original goals of Agenda 21
The term "price supports" refers to a
a. shortage. b. surplus. c. price ceiling. d. price floor.
If the government's provision of a subsidy is too large to counteract the entire effect of a positive externality, the:
A. total surplus will be maximized. B. quantity consumed will become even lower. C. quantity consumed will become too high. D. None of these statements is true.
Refer to the graph shown. The least-cost method of producing 1,000 units of output is shown at point:
A. A. B. B. C. C. D. D.