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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Which of the following is TRUE for a single-price monopolist?
A) P > MR B) P < MR C) P = MR D) P = elasticity of demand
Antitrust laws seek to prevent actions that harm society such as
A) price discrimination. B) refusal to deal. C) predatory pricing. D) All of the above.
If only one firm in an industry could take advantage of a reduced wage and all other firms continue paying the old wage, how would one best describe the one firm's reaction to this reduced wage assuming labor is the only variable input? The
marginal revenue product of labor curve A) would remain unchanged, and the firm would hire more labor at the lower wage. B) shifts to the left, and the firm hires more labor at the lower wage on the new curve. C) shifts to the right, and the firm hires more labor at the lower wage on the new curve. D) shifts to the left, and the firm hires less labor at the lower wage on the new curve. E) shifts to the right, and the firm hires less labor at the lower wage on the new curve.
Which of the following is a possible benefit of labor unions?
A. It may facilitate a smooth relationship between labor and management. B. It may provide workers an intermediary to discuss job issues with managers. C. It may lead to an increase in productivity. D. All of these