Using Figure 1.5, if an economy is currently producing on PP2, which of the following would shift the production possibilities curve toward PP1?
A. An advancement in technology.
B. A decrease in the level of unemployment towards the normal level.
C. An increase in the quantity of labor available.
D. A decrease in the amount of capital available.
Answer: D
Economics
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The velocity of money is equal to nominal GDP divided by money stock.
Answer the following statement true (T) or false (F)
Economics
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Economics