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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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) The migration of labor from low-income country B to high-income country A will:
A. Increase domestic output in both countries
B. Decrease domestic output in both countries
C. Increase domestic output in country A and decrease domestic output in country B
D. Decrease domestic output in country A and increase domestic output in country B
Explain how the arrival of inexpensive broadband has changed the PPF
What will be an ideal response?
Alternating periods of economic growth and contraction are referred to as
A. The business cycle. B. A policy lever. C. Fiscal policy. D. The fiscal cycle.
The total revenue received by sellers of a good is computed by
A. multiplying the price times the quantity sold. B. dividing the percentage change in quantity by the percentage change in price. C. adding the price and the quantity sold. D. multiplying the percentage change in price times the percentage change in quantity.