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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What is an economy?
What will be an ideal response?
The median voter model
A) works well in the area of trade policy. B) is not intuitively reasonable. C) tends to result in biased tariff rates. D) does not work well in the area of trade policy. E) is not widely practiced in the United States.
Economists Novy-Marx and Rauh contend that
A. cities are in fine shape with regard to their pension liabilities, but that states are not. B. states and cities are in poor shape with regard to their pension liabilities. C. states are in fine shape with regard to their pension liabilities, but that cities are not. D. states and cities are in fine shape with regard to their pension liabilities.
If producers have an expectation of higher future prices, the supply of the good that is currently available
A. will be all that is produced. B. will increase. C. will decrease. D. will not change.