Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD 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. D; B
C. A; B
D. B; C
Answer: B
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Suppose that in the future, real GDP per person grows 2 percent a year in the United States and 4 percent a year in China. It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.
A) 35; 8.75 B) 35; 17.5 C) 20; 10 D) 50; 25 E) 70; 35
Total cost of production refers to the:
A) sum of variable costs and fixed costs. B) product of variable costs and fixed costs. C) difference between variable costs and fixed costs. D) ratio of variable costs to fixed costs.
Why are transfer payments excluded from government expenditure in the national income accounts?
What will be an ideal response?
Refer to the information provided in Table 33.4 below to answer the question(s) that follow. Table 33.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 33.4. Chile has
A. an absolute advantage in beer production. B. an absolute advantage in wine production. C. a comparative advantage in wine production. D. a comparative advantage in beer production.