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.

In constructing models, economists

A) include all independent variables. B) include all available information. C) attempt to duplicate the real world. D) make simplifying assumptions.

Accounting profit is equal to:

A. total revenue minus explicit costs. B. total revenue minus implicit costs. C. total revenue minus explicit and implicit costs. D. economic profit minus implicit costs.