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

A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.

Answer: B

Economics

You might also like to view...

The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's total utility when she maximizes her utility?

A) 70 units B) 1516 units C) 2536 units D) 2586 units

Economics

In the last two decades of the 20th century, developing countries as a whole have

a. grown more slowly than developed countries b. grown a bit more rapidly than developed countries c. grown much more rapidly than developed countries d. made very little progress e. none of the above

Economics