Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C
B. B; C
C. B; A
D. D; B
Answer: D
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Consider the monopolist depicted in the figure above. The profit maximizing level of output for a single-price monopolist is
A) 7. B) 11. C) 13. D) 22.
Although an improvement in technology enables perfectly competitive firms to earn a positive economic profit in the short run, entry by new firms will ensure that those profits are eliminated over time
Indicate whether the statement is true or false
Government transfer payments include all of the following except
a. retirement benefits b. paid vacations c. veteran benefits d. disability payments e. subsidies to farmers
All of the following are arguments against free trade EXCEPT
A) the infant industry argument. B) dumping. C) comparative advantage. D) the need to protect American jobs.