Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as

Some researchers argue that the American Revolution was probably inevitable. The most important factor, of those listed below, was/were

(a) prohibitions against trade with nations other than England and severe exploitation of the colonists under the Navigation Acts, which kept the standard of living low in the colonies. (b) excessive taxation which for generations kept the after-tax incomes of the colonists below those in England. (c) a series of revenue-raising measures imposed on the colonists at the end of the French and Indian War for the purpose of making the colonies more self-supporting. (d) British prohibitions against the use of slaves in the lands west of the original thirteen colonies.

Which of the following will occur in a small country with a high marginal propensity to import?

A) Changes in government spending will cause large changes in output. B) Changes in government spending will cause large changes in the trade balance. C) A depreciation will cause only small changes in the trade balance. D) There is no combination of policies that can eliminate the trade deficit. E) all of the above