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
Answer: D
Economics
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In the above figure, suppose the economy is initially at point A. The interest rate in Japan rises relative to the interest rate in the United States. As a result, there will be a change from point A to a point such as ________
A) point B B) point C C) point D D) point E
Economics
Which of the following is an example of a land-intensive commodity?
A. Chemicals. B. Autos. C. Watches. D. Wool.
Economics