Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

Which of the following purchases is most likely to rise as the result of a temporary tax cut, according to the permanent-income hypothesis?

A) television sets and other consumer durables B) steak dinners and other consumer non-durables C) trips to the Virgin Islands and other vacation destinations D) theater tickets and other entertainment expenditures

The concept of economic rent would be more applicable to the earnings of

a. a secretary. b. Peyton Manning. c. a doctor or a lawyer. d. only a landowner.