Even if all individual demand curves are downwardly sloped, the market demand curve may slope upward.
Answer the following statement true (T) or false (F)
False
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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
The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($35), exports ($22), personal consumption expenditures ($2460), and government purchases ($470). What is GDP in this economy?
A. $3250 billion. B. $3237 billion. C. $3263 billion. D. $3290 billion.
Refer to the given figure.
In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as:
A. short-run aggregate supply shifting downward. B. short-run aggregate supply shifting upward. C. aggregate demand shifting leftward. D. long-run aggregate supply shifting leftward.
During a period when output and employment is falling, the government will try to:
A. Increase tax rates B. Increase interest rates C. Reduce government spending D. Stimulate borrowing and spending