The resource income earned by those who supply ________ is called wages

In the United States, a three-pound can of coffee costs about $5 . If the exchange rate is 0.8 euros per dollar and a three-pound can of coffee in Belgium costs 7 euros. What is the real exchange rate?

a. 7/4 cans of Belgian coffee per can of U.S. coffee b. 5.6/5 cans of Belgian coffee per can of U.S. coffee c. 5/5.6 cans of Belgian coffee per can of U.S. coffee d. 4/7 cans of Belgian coffee per can of U.S. coffee

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