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.

Which type of firm produces the largest share of manufacturing output?

A) proprietorships only B) partnerships only C) corporations only D) Proprietorships and corporations are tied.

One difference between moral hazard and adverse selection is

a. Adverse selection has to do with unobservable characteristics of individuals b. Moral hazard has to do with unobservable actions of individuals c. Adverse selection is individuals change their behaviors because of a contract d. Only A&B