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.

Assume that at the current level of output a firm's marginal cost and average variable cost of production are both decreasing

Based on this, we can conclude that the marginal product and average product of the firm's variable input(s) are both increasing. Indicate whether the statement is true or false

The reason people in Professor Rawls' thought experiment would choose an equal distribution of income is that:

A. people are risk-neutral. B. it is the easiest distribution to implement. C. they are concerned about the welfare of others. D. they fear ending up in a disadvantaged position themselves.