Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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All of the following statements are true of the minimum efficient scale except one. Which one?
A) Any increase in the scale of operation will encounter either constant returns to scale or diseconomies of scale. B) All possible economies of scale have been exhausted. C) The short-run average total cost curve's minimum point is equal to the long-run average cost curve's minimum point. D) An increase in the output level will increase profit.
Accounting profit differs from economic profit by the amount of the explicit costs faced by a firm.
Answer the following statement true (T) or false (F)
A backward-bending labor supply curve could possibly imply which of the following cases?
A) Leisure is an inferior good. B) Leisure is a normal good. C) Leisure is a normal good at low wages and inferior at high wages. D) None of the above.
Which of the following serves as the central banker for private banks in the United States?
A. The 12 regional Federal Reserve banks. B. The Executive Branch of government. C. The Board of Governors of the Federal Reserve System. D. The Fed Open Market Committee.