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.

Many golf courses charge members an annual membership fee as well as a fee each time they golf. One reason for this is

A) charging both fees allows the courses to transfer more producer surplus into profit than charging only an admission fee. B) golf courses do not want their members to overuse their fairways. Charging for each round of golf played reduces fairway maintenance costs. C) research has shown that charging both fees increases the likelihood that golfers will renew their memberships. D) charging both fees allows the courses to transfer more consumer surplus into profit than charging only an admission fee.

If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:

a. $100,000. b. $80,000. c. $300,000. d. $20,000. e. $200,000.