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.

Refer to Figure 8.1. Holding other variables constant, an increase in the skill level of workers will result in a

A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.

Productive efficiency requires production at a quantity such that:

a. MC = MR b. MC = ATC c. MC = D d. ATC = D