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. 

It is useful to distinguish between the cost of obtaining and the cost of providing goods because

A) costs always pertain to specific actions. B) obtaining is more costly than providing. C) providing is more costly than obtaining. D) supply must equal demand.

In which of the following cases was the inflation rate 12 percent over the last year?

a. One year ago the price index had a value of 110 and now it has a value of 120. b. One year ago the price index had a value of 120 and now it has a value of 132. c. One year ago the price index had a value of 134 and now it has a value of 150. d. One year ago the price index had a value of 145 and now it has a value of 163.