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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An ad valorem tax on demanders causes the _____ to shift by a constant _____
a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount
Listening to a political ad or an ad for a new product usually requires:
a. Critical listening b. Intellect c. Emotions d. An extroverted personality
Firms maintain their completive edge by
a. Providing a good at lower costs than their rivals b. Providing a superior product at the same cost as your rival c. Being innovative d. All the above
If you were a Keynesian economist, you would
a. believe that saving is always detrimental to our economic health b. believe that increased saving always leads to lower national income0 c. believe that increased investment is undesirable d. see economic trouble ahead if saving increases unattended by a complementary increase in intended investment e. actively try to achieve the paradox of thrift for our national economy