Which view of the macro economy suggests that the speed of adjustment for self-correction would be very quick?

Under the perfectly competitive market structure, the demand curve of an individual firm is

A) perfectly inelastic. B) downward sloping. C) relatively inelastic. D) perfectly elastic.

Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary