Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at creating ___gap.

A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary

Answer: D

Economics

In the pre-World War I period, the United Kingdom exported mainly

A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) livestock.

View

Economics

Speculation is the opposite of hedging

Indicate whether the statement is true or false

View

Economics

Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.