Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:

What is the Effective Tax Rate?

What will be an ideal response?

Refer to the above figure. Suppose E is the original equilibrium. An increase in the U.S. demand for Japanese-made goods will lead to

A) a depreciation of the yen and an increase in the quantity of yen sold per week. B) a depreciation of the yen and a decrease in the quantity of yen sold per week. C) an appreciation of the yen and an increase in the quantity of yen sold per week. D) an appreciation of the yen and a decrease in the quantity of yen sold per week.