If the aggregate demand curve shifts to the right in the short run then the long-run equilibrium will be at a:
A. higher price level and higher level of output.
B. higher price level and lower level of output.
C. higher price level and same level of output.
D. lower price level and higher level of output.
C. higher price level and same level of output.
You might also like to view...
Comment on the following statement: "In economics, investment means a wide variety of things including purchases of stocks, bonds, and other financial assets."
What will be an ideal response?
Statistical studies in the United States have reached the conclusion that for low-income workers
A. the substitution effect is greater than the income effect. B. the income effect is greater than the substitution effect. C. the income effect is about equal to the substitution effect. D. the substitution effect is of the “wrong” sign.
The marginal rate of substitution is the
A) rate at which the consumer can exchange one good for the other.
B) change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant.
C) change in the quantity of one good that changes the utility received by one unit.
D) same thing as the marginal utility of a good.
The point on the production possibilities curve at which an economy will operate is determined by:
A) which point produces the greatest amount of both goods. B) the demands of consumers. C) the absolute prices of the two goods. D) which point requires the fewest resources.