The horizontal dotted line is
A. a price ceiling.
B. a price floor.
C. can be either a price ceiling or a price floor.
D. is neither a price ceiling nor a price floor.
A. a price ceiling.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 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. B; C C. B; A D. D; B
Which of the following will be included in the calculation of GDP using the income-based method?
A) Export of food grains to foreign countries B) The value-added by a worker in the production of a good C) A health insurance provided to a worker by the employer D) Money paid to a pharmacist for medicines
What are the direct and indirect effects of an increase in the money supply?
What will be an ideal response?
If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be above and then below the 45 degree line
a. True b. False Indicate whether the statement is true or false