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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Restricting imports of Brazilian shoes will
a. raise the price of both Brazilian and domestically produced shoes b. raise the price of Brazilian shoes but lower the price of domestically produced shoes c. lower the price of Brazilian shoes but raise the price of domestically produced shoes d. lower the price of both Brazilian and domestically produced shoes e. benefit the producers of shoes in Brazil
The Laffer curve is a relationship based on the presumption of an indirect relationship between government tax rates and gross domestic product (GDP)
Indicate whether the statement is true or false
Are jobs the key to economic progress and the achievement of high income levels?
What will be an ideal response?
Use the following scenario for the question below. A group of 100 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $150,000. What will the average premium be if the health insurance company estimates the premium adding net loading costs of 15 percent?
a. $1,200 b. $2,250 c. $1,500 d. $1,725 e. $1,765