Refer to the figure above. In autarky, the economy would be in general equilibrium at point

The figure above portrays a total revenue curve for a perfectly competitive firm. Curve A is straight because the firm

A) is a price taker. B) faces constant returns to scale. C) wants to maximize its profits. D) has perfect information.

Suppose fiscal policy makers pass a budget that cuts taxes in the current period and are expected to cut taxes in the future. Use the IS-LM model to illustrate graphically and explain the effects of this policy on current output and the current interest rate

What will be an ideal response?