Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

The difference between what consumers have to pay for a particular and what they are willing to pay is known as

A) consumer surplus. B) producer surplus. C) deadweight costs. D) deadweight surplus.

The neoclassical synthesis

A) was a name coined by Keynes himself for his new theories. B) rejected virtually all of Keynes' insights. C) held that econometric models of the economy could not be used to predict the future. D) held that economy always operated at or very near the natural rate of unemployment. E) was the dominant school of thought among economists in the 1950s and 1960s.