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 above figure shows the market for pizza. The market is in equilibrium. Pizza and tacos are substitutes for consumers. The price of tacos falls. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
What is the Customer Acquisition Cost?
a. Total cost of customers b. Average cost per customer c. The marginal cost of acquiring another customer d. All of the above
Excess capacity characterizes firms in monopolistically competitive markets, even in situations of long-run equilibrium
a. True b. False Indicate whether the statement is true or false
Which of the following makes short-term conditional low-interest loans to LDCs?
a. Agency for International Development (AID) b. World Bank c. Agency for International Finance (AIF) d. International Monetary Fund (IMF)