Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary
B. B; no output
C. B; expansionary
D. A; a recessionary
Answer: A
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Which of the following was a successful application of fiscal policy in the United States?
a. Roosevelt's strategy in combating the Great Depression b. The tax cut of 1964 c. The temporary tax surcharge of 1968 d. The battle against stagflation during the 1970s e. The large tax cut of 1981
Other things constant, an increase in the price of beef will: a. encourage consumers to buy more beef
b. discourage consumers from buying as much beef. c. shift the demand curve for beef to the right. d. shift the demand curve for beef to the left.
What was the labor force participation rate in 2004 in Table 6.1?Table 6.1?200420052006Working Age Population200 million225 million275 millionLabor Force150 million165 million200 millionUnemployed5 million15 million35 million
A. 75.0 percent. B. 133.3 percent. C. 77.5 percent. D. 18.3 percent.
In 2016, the Isle of Lucy's planned investment was $130 billion and its actual investment was $145 billion. In 2016, the Isle of Lucy's unplanned inventory change was
A. $15 billion. B. $30 billion. C. $45 billion. D. $275 billion.