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

Which of the following is most important if a country wants to move from a low-income to a high-income status?

a. high rates of monetary growth. b. sustained economic growth. c. high real interest rates. d. high nominal interest rates.

Which of the following would increase aggregate expenditure?

a. increased government spending with no change in taxes b. decreased taxes with no change in government spending c. increased government spending with a proportionate increase in taxes d. All of these.