Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary
B. B; no output
C. B; expansionary
D. A; a recessionary
Answer: A
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When tariffs on imports are eliminated, everyone benefits.
Answer the following statement true (T) or false (F)
Considering two countries X and Y, country X has a comparative advantage in the production of a good when it can produce the good at a lower opportunity cost than country Y
Indicate whether the statement is true or false
The opportunity cost of production differs from an accounting definition of a firm's costs because it includes
a. expenditures the firm undertakes for research and development. b. the opportunity cost of assets and financial resources owned by the firm. c. the direct monetary cost of purchasing resources. d. the firm's revenue as a cost.
When a binding price floor is imposed on a market to benefit sellers,
a. every seller in the market benefits. b. all buyers and sellers benefit. c. every seller who wants to sell the good will be able to do so, but only if he appeals to the personal biases of the buyers. d. some sellers will not be able to sell any amount of the good.