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
Economics
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The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for typewriters after technological advances in computerized word-processing software occur?
A) Graph A B) Graph B C) Graph C D) Graph D
Economics
When the APC is greater than 1, the APS must be
A. Negative. B. Between 0 and 1. C. Equal to 1. D. Greater than 1 also.
Economics