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.

Which of the following countries began liberal economic reforms during the 1980s and now have significantly more economic freedom than during the mid-1980s?

a. Ireland and New Zealand b. France and Italy c. Sierra Leone and Haiti d. United States and Germany

The firm's short-run costs contain

A. only fixed costs. B. both variable and fixed costs. C. only variable costs. D. only opportunity costs.