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
Answer: D
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The purchase of fifty new food-processing machines by the Campbell Soup Corporation would be classified as investment spending
a. True b. False Indicate whether the statement is true or false
The depreciation of a country's currency causes the price of imports to
A. Rise and the prices of exports to fall. B. Fall and the prices of exports to fall. C. Fall and the prices of exports to rise. D. Rise and the prices of exports to rise.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.
Karl Marx believed in all of the following, except
A. controlling political power was more important than controlling the ownership of capital with respect to dominating a society. B. in capitalist societies, a business owner makes huge profits by exploiting his workers. C. one's social consciousness was determined by one's relationship to the means of production. D. inevitably there would be a clash between capitalists and workers.