Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
Economics
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If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest rate is
A. 0.75%. B. 1%. C. -1%. D. 7%.
Economics
In the long run, if the prices of goods and services are higher than before the aggregate quantity:
A. demanded will be lower. B. demanded will be higher. C. supplied will be higher. D. supplied will not change.
Economics