Using the DD model, explain what happens to out put when Government demands increase. Use a figure to explain when it is taking place
What will be an ideal response?
The figure below shows the G1 to G2 raises output at every level of the exchange rate. The change shifts the DD to the right. Which in turns increases output to Y2.
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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
The South was characterized by all of the following except
(a) large plantations and slave labor. (b) a more unequal distribution of income and wealth than in the North. (c) a lack of public education systems. (d) a strong manufacturing sector.
Which of the following policies might create demand-pull inflation?
A. An increase in taxes B. An increase government spending C. An increase in interest rates D. All of these policies could create demand-pull inflation
Firms gain control over price in monopolistic competition by
A. differentiating their products. B. blocking entry of other firms into the industry. C. producing a product for which there are no close substitutes. D. colluding with other firms to set prices.