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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Which of the following would prevent a pharmaceutical manufacturer from successfully using price discrimination?
a. It's customers all have the same elasticity of demand for its drugs. b. The demand schedule for pharmaceuticals is horizontal. c. Low-price customers could resell the drugs to high-priced customers. d. All of the above.
The U.S. federal debt that accumulated between 1970 and 2010
A. Caused significant economic damage to the U.S. economy. B. Occurred at the expense of the foreign sector. C. Is an asset and a liability for the U.S. economy. D. Occurred without an increase in the size of the government sector.
Which of the following factors affect a country's net foreign investment?
a. real interest rates paid on foreign assets b. real interest rates paid on domestic assets c. government policies that affect foreign ownership of domestic assets d. all of the above e. none of the above
The real wages of workers will tend to be high when
a. industries are automating at a slow rate. b. output per worker is high. c. capital is scarce. d. profits are low.