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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The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 did not prohibit companies issuing securities from paying the credit-rating agencies to rate them. This is an example of which remedy of conflicts of interest?
A) regulate for transparency B) supervisory oversight C) leave it to the market D) socialization of information production
If households pay a fixed annual fee for trash disposal,
A) households will all tend to produce the same amount of garbage. B) households have no incentive to cut back on the amount of garbage they generate. C) that fee will provide households with an incentive to cut back on the amount of garbage they generate. D) that fee will discourage households from throwing out reusable materials. E) that fee will discourage households from throwing out toxic or otherwise harmful materials.
Evaluating tort law solely from the standard of economic efficiency,
a. tort law fails at spreading the risk. b. tort law deters specific behavior c. tort law punishes bad behavior. d. none of these is correct
An organization of sellers designed to coordinate their supply decisions to maximize joint profits is called a:
a. consumer cooperative. b. marketing association. c. regulatory agency. d. cartel.