A city finances a performing arts center by adding a $2.75 tax to each ticket sold.This is an example of taxation via the benefits principle

For a country with a fixed exchange rate that is running continuous overall payments surpluses the following is true.

A. The country has an overvalued currency. B. The country's monetary authority will suffer losses on its official reserve holdings if the country's currency is revalued. C. The country is in an optimal situation. D. The country's monetary authority will eventually run out of foreign reserves.

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