Refer to the accompanying figure.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 present value of a sum of money to be received in future is high if ________

A) the money is invested for a long period of time B) the market rate of interest is low C) the rate of inflation is high D) the future payment is low

A service station owner in Staten Island, New York, was worried that raising the price of gasoline would cause the quantity demanded to fall by so much that he would be in a worse situation than if he did not raise the price

If raising the price of gasoline would cause the owner to receive less total revenue from the sale of gasoline, the demand for gasoline is A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic.