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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If the idea of herd instinct is true, it suggests that the:
A. efficient-market hypothesis doesn't always hold. B. efficient-market hypothesis does, in fact, hold. C. inefficient-market hypothesis doesn't always hold. D. inefficient-market hypothesis does, in fact, hold.
In order to make an optimal choice we must use
a. percentage analysis. b. total analysis. c. average analysis. d. marginal analysis.
Which of the following will increase economic freedom?
a. freedom to enter and compete in markets b. high tariff rates c. high taxes d. rapid and unpredictable inflation
The curve that shows how the best affordable consumption bundle changes as the price of a good changes (holding the consumer's income, preferences and all other prices fixed) is called
A. a price-consumption curve. B. an individual demand curve. C. an income-consumption curve. D. a budget line.