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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When an economy faces diminishing returns
A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. B) the per-worker production function shifts to the left. C) the slope of the per-worker production function becomes flatter as capital per hour worked increases. D) the per-worker production function shifts to the right.
Unemployed workers in developing economies typically have access to various government programs like unemployment insurance, welfare, and food stamps
a. True b. False Indicate whether the statement is true or false
The poverty line fell the most between
A. 1960 and 1968. B. 1968 and 1976. C. 1976 and 1984.
During a recession, the price of restaurant meals falls by over 10 percent. The most likely cause is:
A. a shift of the demand curve to the right. B. a shift of the supply curve to the left. C. a shift of the supply curve to the right. D. a shift of the demand curve to the left.