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

If the demand for a product is elastic, the quantity demanded changes by a larger percentage than the percentage change in price

Indicate whether the statement is true or false

A good policy ________________ and a bad policy _________________

a. Moves an asset to higher value use; moves an asset to lower value use b. Moves an asset to lower value use; moves an asset to higher value use c. Refrains from any government intervention; concentrates on government intervention d. Concentrates on government intervention; refrains from government intervention