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. 

What is the difference between economic profit and accounting profit?

What will be an ideal response?

The existence of positive externalities in the consumption of a good implies that: a. the social supply curve of the good lies to the right of the private supply curve

b. the government will need to provide subsidies to ensure a socially efficient level of consumption. c. the socially efficient quantity of the good will be less than the market equilibrium quantity. d. the good generates an external cost. e. the market equilibrium price of the good will be greater than the social equilibrium price.