Refer to the above figure. Suppose the current aggregate demand is represented by AD2. If aggregate demand falls to line AD3, then
A) the new equilibrium will be at j.
B) the new equilibrium will be at k.
C) the new equilibrium real Gross Domestic Product (GDP) will be x.
D) a new price level will be established at a.
Question 2
In which industry structure is advertising and sales promotion likely to be most important?
A) perfect competition
B) monopoly
C) monopolistic competition
D) All of the above are equally reliant on effective advertising and promotion.
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