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.
A. D; C
B. B; C
C. B; A
D. D; B
Answer: D
Economics
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Corporate governance involves the way in which
A) the government licenses corporations. B) a corporation is structured. C) the government nationalizes corporations. D) a corporation is subject to government regulations.
Economics
Refer to Figure 8.5. Equilibrium in this market is represented by a real wage of ________ and quantity of labor ________
A) w1; L1 B) w1; L2 C) w2; L1 D) w2; L3
Economics