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

Freezing temperatures in California have sharply reduced the supply of oranges in the U.S. You predict that the price of oranges will ________, and the more elastic the demand for oranges, the ________ will be the effect on the price

A) fall; smaller B) fall; greater C) rise; smaller D) rise; greater

To approximate the percentage change in real income over any period of time,

a. we need to subtract the percentage change in nominal income from the inflation rate b. we need to subtract the rate of inflation from the percentage change in nominal income c. we need to divide the percentage change in nominal income by the inflation rate d. we need to multiply the change in income by the inflation rate e. we need to multiply the nominal percentage change in income by the percentage change in inflation rate