In the above figure, assume the economy is in equilibrium at ...

[Zulu123]

In the above figure, assume the economy is in equilibrium at point d. Then the Fed decreases the money supply so that the new aggregate demand curve is AD1. In the long run, the new price level will be
 
  A) 100.
  B) 120.
  C) 130.
  D) 110.

Question 2

The reason that patents are granted is
 
  A) to encourage a high rate of consumption.
  B) to protect new techniques developed through research and development.
  C) to encourage free trade.
  D) to increase the labor force.

[rosiehomeworddo]

Answer to Question 1

A

Answer to Question 2

B