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
Answer: B
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The process by which simultaneous withdrawals by a particular bank's depositors results in the bank closing is known as a
A) contagion. B) bank run. C) financial crisis. D) bank panic.
Taxes
A. are mandatory payments. B. are necessary for financing government expenditures. C. do not directly relate to the benefit of government goods and services received. D. all of these answer options are correct.
Which of the following is true of monopoly?
a. There are no barriers to entry. b. The firm is a price taker. c. There are no close substitutes for the product being produced. d. There are many firms in the industry. e. The firm faces a horizontal demand curve.
The short run is that period during which there are no fixed commitments
a. True b. False Indicate whether the statement is true or false