Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary
Answer: D
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Suppose a new study highlights the health benefits of eating bacon. At the same time, suppose the cost of producing bacon falls. Given these changes, you should expect to see:
A. an increase in both the equilibrium price and quantity of bacon. B. an increase in the equilibrium price of bacon, but it's hard to say what will happen to the equilibrium quantity. C. an increase in the equilibrium quantity of bacon, but it's hard to say what will happen to the equilibrium price. D. a decrease in the equilibrium price of bacon, but it's hard to say what will happen to the equilibrium quantity.
Suppose a roll of paper towels costs $5 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is more expensive for the consumer to buy the paper towels at Big Supplies. B) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop. C) It is cheaper for the consumer to buy the paper towels at Big Supplies. D) The consumer is indifferent as to where they buy the paper towels.
In 2001, the labor force participation rate of women was ________
a. about 10 percent. b. about 25 percent. c. just over 60 percent. d. more than 80 percent.
A fall in the price of a competing product will produce an outward shift in the demand curve for most products
a. True b. False Indicate whether the statement is true or false