Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.
Answer: B
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An increase in planned real investment spending causes
A. a shift of the C + I + G + X curve and a movement along the aggregate demand curve. B. a shift of the C + I + G + X curve but has no effect on the aggregate demand curve. C. a shift of the C + I + G + X curve that causes the aggregate demand curve to shift. D. a movement along the C + I + G + X curve and a shift of the aggregate demand curve.
Intel's monopoly in the sale of microchips for personal computers would be considered:
A. Legal by "behaviorists" but illegal by "structuralists" B. Legal by "behaviorists" and "structuralists" C. Illegal by "behaviorists" and "structuralists" D. Illegal by "behaviorists" but legal by "structuralists"
Which factor contributed to the demise of stagflation during the 1982-1989 period?
A. A lessening of foreign competition B. The decline of the monopoly power of OPEC C. An increase in the per-unit cost of production D. An increase in regulation of airline and trucking industries
If Elmer Lach is taxed $100 on an income of $1,000 . Toe Blake is taxed $180 on an income of $2,000 . and Maurice Richard is taxed $220 on an income of $3,000 . the tax system is
a. progressive b. poll c. proportional d. regressive e. head