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

When does a price searcher's marginal revenue curve lie below its demand curve?

A) At all times, since this is the definition of a price searcher B) When it cannot confine price reductions to the new sales it's trying to attract by lowering its price C) When it is producing more than the net revenue maximizing quantity D) When its marginal cost curve is rising E) When the demand curve slopes downward to the right

Financial crises due to weak financial sectors can often be avoided if international lenders respond appropriately

Indicate whether the statement is true or false