In the above figure, if the firm increases its output from Q1 to Q2, it will

If fiscal stimulus creates a large budget ________, then in the long run economic growth ________

A) deficit; decreases B) surplus; increases C) deficit; increases D) surplus; decreases E) None of the above answers is correct. The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.

A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market

a. True b. False Indicate whether the statement is true or false