Author Question: In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of ... (Read 82 times)

jake · **on:** Jun 29, 2018

In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of an increase in

A) the price level.
B) foreign incomes.
C) aggregate supply.
D) the foreign exchange rate.
E) expected future income.

Question 2

The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons?

A) 6 thousand bottles of wine
B) 9 thousand bottles of wine
C) 15 thousand bottles of wine
D) 12 tons of rice
E) Nothing, it is a free lunch.