To find an economy's long-run equilibrium price level, locate the ...

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To find an economy's long-run equilibrium price level, locate the point where ________ and ________ cross and look to the left.
 
  A) long-run aggregate supply; aggregate demand B) aggregate demand; short-run aggregate supply
  C) aggregate demand; price level D) demand; supply

Question 2

Assume that the supply curve for a commodity shifts to the right and the demand curve shifts to the left, and the shift in demand is greater than the shift in supply.
 
  Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by:
  A) a lower price and a higher quantity. B) the same price and a lower quantity.
  C) a higher price and a lower quantity. D) a lower price and quantity.

[Mholman93]

Answer to Question 1

A

Answer to Question 2

D

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Thanks for the timely response, appreciate it

[mammy1697]

YES! Correct, THANKS for helping me on my review