The expenditure multiplier is smallest when the
A) LM curve is positively sloped.
B) LM curve is horizontal.
C) IS curve is vertical.
D) LM curve is vertical.
D
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Refer to the figure above. What is the equilibrium quantity after the demand curve shifts to D2?
A) 20 units B) 30 units C) 35 units D) 50 units
In 1990, Senator Moynihan suggested that Social Security receipts and expenditures be taken off-budget so that the Social Security surplus would not be shown as part of the regular budget. He claimed that, under current accounting procedures, the Social Security surplus was masking the true size of the federal deficit. Would his proposal be a good idea?
What will be an ideal response?
The decision to expand the size of your factory is a long-run decision
Indicate whether the statement is true or false