On the graph above, suppose the economy is at point 6. Which sequence of points best illustrates the short-run and then long-run impacts of an "expansionary fiscal contraction"?

A) 2, 7, 8
B) 4, 7, 1
C) 1, 4, 5
D) 1, 4, 2


D

Economics

You might also like to view...

Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________

A) 1 bolt per nut B) 1/2 bolt per nut C) 8/6 bolts per nut D) 8 bolts per nut

Economics

Refer to Figure 10.3. What price will the monopsonist pay when maximizing profit?

A) P1 B) P2 C) P3 D) P4 E) P5

Economics

What is the common method of financing a budget deficit?

Economics

One signal that the U.S. dollar was overvalued in the early 1970s was the

a. stable price of gold. b. volume of international trade. c. recurring balance-of-trade deficits in the U.S. d. recurring balance-of-trade deficits in European countries.

Economics