Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD 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. D; B
C. A; B
D. B; C
Answer: B
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The analysis of how a customer's tastes for cars will change when his wealth triples is under the scope of:
A) ordinal study. B) comparative statics. C) marginal research. D) Pareto analysis.
__________ explores the roles of different level of government and the ways in which they relate to each other.
A. Federal system B. Club model C. Centralization D. Fiscal federalism
To maintain a fixed exchange rate, authorities
A) make laws stipulating the exchange rate. B) modify money supply. C) modify government expenses. D) modify taxes.
Which of the following statements is true about information transfer within an organization?
a. More information is always better. b. People at higher levels cannot add to the quality of a decision when an employee lower in the order has all the information and is able to take the decision on his/her own. c. Decision relating to a particular department in an organization usually depends only on the information provided from that department. d. Optimal amount of information removes the risk of errors in decision-making.