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practice testMultiple Choice

Practice Test

Question 1 • Economics

What is likely to happen if a new aggregate demand curve moves to the right?

Answer
A
Prices would rise, and output would drop in the long run.
B
Prices would rise, and output would drop in the short run.
C
Prices and output would drop, and the equilibrium point will stay the same.
D
Prices and output would rise, and the equilibrium point will change.
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What is likely to happen if a new aggregate…