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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Fiscal policy affects the economy
A. only in the short run. B. only in the long run. C. in both the short and long run. D. in neither the short nor the long run.
Which of the following would increase the GDP of the United States?
a. A resident of California buys a case of wine from a winery in France.
b. A resident of Germany buys a software program from a company in Washington.
c. A resident of Florida spends $3,000 on a vacation in Mexico.
d. A Japanese investor purchases 100 shares of a computer company located in Illinois.
Based on this new information, what is Willy's "expected loss" due to an accident, provided that he installs the equipment?
Assume all of the information from Question #10 above, with one exception: Willy has the option of installing additional safety equipment that will reduce the probability of an accident to 10%. A. $20,000 B. $50,000 C. $100,000 D. $125,000
In many elections the Republican and Democratic candidates share remarkably similar views-so similar that independent candidates (who rarely win the elections) often enter elections to represent opposing views. How can the similarity between the Republicans and Democrats be explained?
What will be an ideal response?