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. 

Refer to Scenario 14.4. Suppose that the price of the product rises to $5, the number of workers hired

A) will decrease. B) will increase. C) will not change. D) cannot be determined without knowing the wage rate.

The probit model

A) is the same as the logit model. B) always gives the same fit for the predicted values as the linear probability model for values between 0.1 and 0.9. C) forces the predicted values to lie between 0 and 1. D) should not be used since it is too complicated.