In the typical AC curve, the downward-sloping part is attributable to
a. spreading fixed costs over larger outputs and increasing returns to the variable inputs.
b. declining administrative costs as output increases.
c. falling fixed costs.
d. rising total product.
a
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Changes in the capital stock occur ________, and changes in the amount of labor that firms employ occur ________
A) quickly; quickly B) slowly; slowly C) slowly; quickly D) quickly; slowly
Suppose a person with an income of $20,000 pays a tax of $2,000 . If the tax is progressive, then how large of a tax will a person with an income of $40,000 pay?
a. Exactly $2,000. b. Between $2,000 and $4,000. c. Exactly $4,000. d. More than $4,000.
Which of the following statements are correct?
What will be an ideal response?