In the above figure, assume the economy starts out in equilibrium at point d. If the Fed increases the money supply so that the new aggregate demand curve is AD3, then the long-run equilibrium will be at point
A) a.
B) b.
C) c.
D) i.
Question 2
A government-inhibited good is a good which
A) is not subject to the principle of mutual exclusivity.
B) the political process has deemed socially undesirable.
C) can be consumed by one individual without affecting the consumption of another individual.
D) the political process has deemed socially desirable.
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