In the figure above, as the price level increases, the aggregate demand curve will
A) shift from AD1 to AD3 and then back to AD1.
B) shift from AD1 to AD3.
C) shift from AD1 to AD2.
D) not shift, but the aggregate demand curve will change so that it is positively sloped.
E) not shift.
E
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Lower tariffs and quotas cause a country's currency to ________ in the ________ run, everything else held constant
A) depreciate; short B) appreciate; short C) depreciate; long D) appreciate; long
If a person gives a gift to another person, an economist would say that it is because
A) the marginal benefit of giving the gift is at least as great as the marginal cost of giving the gift. B) the marginal cost of giving the gift is at least as great as the marginal benefit of giving the gift. C) he expects to receive a gift in return. D) none of the above