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

The prime interest rate is the

A) interest rate on six-month U.S. Treasury bills. B) discount rate. C) Federal funds rate. D) interest rate that banks charge high-quality borrowers.

The Great Divergence refers to:

a. The collapse of communism b. AsiaÕs rise after World War II c. ChinaÕs rapid growth after MaoÕs death d. The decline of Asia after the industrial revolution e. none of the above