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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If the economy were truly made of industries that fit the textbook definition of perfect competition what do you expect would be a major disadvantage of this from the consumer's perspective?
What will be an ideal response?
A country's budget constraint states that
A) the value of exports must be equal to the value of imports. B) real income in the exporting country must be equal to real income in the importing country. C) unless a country engages in trade, the value of exports cannot exceed the value of goods produced. D) a country will engage in trade only if the value of imports exceed the value of exports. E) a country will engage in trade only if the value of exports exceeds the value of imports.
"Localvores" refers to food products which are
A) organically produced. B) imported from foreign countries. C) grown in places which are close to the point of consumption. D) provide health and nutritional benefits in combating diseases.
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $4,500 . Profits=$9,000 b. Bundle the goods at $6,000 . Profits=$12,000 c. Bundle the goods at $5,000 . Profits=$10,000 d. Bundle the goods at $9,500 . Profits=$19,000