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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What are some of the reasons used to explain improvements in health, education, democracy, and political stability in many low-income countries?
What will be an ideal response?
Given the following information for November? 2010, calculate the amounts of M1 and M2 in November 2010. The amounts are in billions of dollars
Currency $915.0 Demand deposits 507.0 Money market mutual funds (retail only) 711.1 Other checkable deposits 405.2 Savings deposits, including money market deposit accounts 5,317.9 Small-denomination time deposits 943.3 Traveler?s checks 4.7
According to the text, over 40 percent of member nations of the International Monetary Fund have
A) a fixed exchange rate. B) no separate legal currency. C) an independently floating exchange rate. D) a managed floating exchange rate.
Refer to Figure 24-4. Given the economy is at point A in year 1, what will happen to the price level in year 2?
A) It will remain constant. B) It will fall. C) It will rise. D) not enough information to answer the question