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.

The rate of growth of output per capita for the United States and France between 1985 and 2014 has been caused by

A) the rate of technological progress. B) the saving rate. C) the accumulation of capital. D) the rate of growth of N.

Define and distinguish between real and nominal GDP. Explain why the distinction is important to economists