Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary
Answer: D
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In order for a hotel to successfully price discriminate so that senior citizens are given a discount, the hotel must be able to
A) offset the economic loss from charging senior citizens a lower price by lowering the marginal cost of renting rooms to senior citizens. B) lower its prices to younger customers too. C) prevent senior citizens from reselling their rooms to younger customers. D) shift its demand curve rightward. E) determine if a senior citizen can pay a higher price.
The marginal productivity theory of income distribution was developed by
A) William Stanley Jevons. B) George Akerlof. C) John Bates Clark. D) Edward Lazear.
An increase in the minimum wage to $7 would cause ____ million people to lose their jobs.
Explain why the marginal revenue product of labor curve is the firm's short-run demand curve for labor.
What will be an ideal response?