A cut in taxes, combined with an increase in government purchases, would:
a. increase AD

Price differentiation is a situation in which

A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers. B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers. C) consumers' comparison-shop. D) the demand curve is vertical.

According to the Aggregate Demand Aggregate Supply diagram, policy makers face a short-term trade-off between ________ when implementing anti-inflation policies.

A. inflation and unemployment B. inflation and expansion C. recession and stagflation D. long-term equilibrium and short-term equilibrium