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

A possible advantage of a horizontal merger for the economy is that

A) the merging firms could avoid losses. B) the merged firm might reap economies of scale which could translate into lower prices. C) the degree of competition in the industry will be intensified. D) the government stands to collect more corporate income tax revenue.

Answer the following statements true (T) or false (F)

1. Constant-dollar GDP can be converted into current-dollar GDP by multiplying the real GDP by the implicit price defoliators 2. The GDP does not include raw materials used up in the productive process. 3. The GDP makes no measurement of the deterioration of the natural environment. 4. National income is equivalent to total earnings in the form of wages, rent, interest, and profits. 5. Transfer payments are added to NI in the process of determining personal income.