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

"A government surplus can decrease investment through the crowding-out effect because the surplus decreases the supply of loanable funds." Is the previous assertion right or wrong? Why?

What will be an ideal response?

Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the average cost of producing 3 units of corn?

A) $1.00 B) $1.10 C) $2.10 D) $3.30