Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.
Answer: B
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GATT stands for:
a. Good and Total Trade. b. General Agreement on Tariffs and Trade. c. Greater Agreements Toward Trade. d. Gold and Trade Totals. e. Greater Area Trade Transactions.
Suppose the United States had a short-term shortage of farmers. Which mechanisms would adjust to remove the shortage?
a. The government would provide tax incentives to encourage people to become farmers. b. The government would subsidize the production of food. c. The prices of food and the wages of farmers would adjust. d. There are no mechanisms to remove the shortage.
To increase living standards, public policy should
a. ensure that workers are well educated and have the necessary tools and technology. b. make unemployment benefits more generous. c. move workers into jobs directly from high school. d. ensure a greater degree of equality, taking all income-earners into account.
If you have a comparative advantage in a particular task, then:
A. you have specialized in that task, while others have not. B. you complete it faster than other people. C. you give up less to accomplish that task than do others. D. you give up more to accomplish that task than do others.