Refer to the diagram. Suppose that aggregate demand increased from AD 1 to AD 2 . For the price level to stay constant:
A. the aggregate supply curve would have to shift rightward.
B. the aggregate supply curve would have to shift leftward.
C. real domestic output would have to remain constant.
D. the aggregate supply curve would have to be vertical.
A. the aggregate supply curve would have to shift rightward.
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A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply
NIPA benchmark revisions are those that
A. are the final revision of the data. B. incorporate changes in seasonal factors. C. affect data back in time, sometimes as long ago as 1947. D. use income-tax information.