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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If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of
A. both products to the right. B. both products to the left. C. grapefruit to the right. D. oranges to the left.
National policy always overrides free trade in matters of environmental concern
Indicate whether the statement is true or false
If India has an absolute advantage in rug production when compared to England, then:
a. India should export rugs to England. b. England should export rugs to India. c. international trade should not occur. d. England uses fewer resources to produce rugs than India. e. India uses fewer resources to produce rugs than England.
When electronic digital wristwatches were first introduced in 1972 they were priced at $2,100. If the CPI in 1972 was 42 and the CPI in 2019 is 275, then this price is equivalent to approximately ______________________in 2019 dollars.
A. $20,950 B. $11,650 C. $13,750 D. $245 $321