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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Which of the following statements is true?
A) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time. B) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. C) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. D) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
Which of the following labor market statistics best indicates the amount of labor that is available to the economy from a given working-age population?
A) labor force participation rate B) unemployment rate C) discouraged-worker ratio D) the ratio of minimum wage to inflation
In the United States, consumers usually pay ________ than the true cost of medical treatment because of ________
A) more; adverse selection B) less; rising insurance deductibles C) less; third-party payers D) more; rising insurance premiums
In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?
A) The demand curve will shift to the right and became more elastic. B) The demand curve will shift to the right and became less elastic. C) The demand curve will shift to the left and became more elastic. D) The demand curve will shift to the left and became less elastic.