The long run equilibrium level of real output increases whenever:
a. AD increases
b. SRAS increases.
c. LRAS increases.
d. Any of the above occurs.
c
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD 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. D; B C. A; B D. B; C
What is the relationship between the marginal product of labor and the marginal cost?
What will be an ideal response?
Under the new discount window system, the interest rate for primary credit loans is set
A) one percentage point below the federal funds rate target. B) one percentage point above the federal funds rate target. C) two percentage points above the federal funds rate target. D) two percentage points below the federal funds rate target.
When the movie Jurassic Park debuted in Westwood, California, the price of tickets was $7.50. After several months the ticket price had fallen to $4.00. This is an example of
A) peak-load pricing. B) second-degree price discrimination. C) a two-part tariff. D) tying. E) none of the above