Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point and eventually to a long-run equilibrium at point , if left to self-correcting tendencies.

A. D; C
B. B; C
C. B; A
D. D; B

Answer: D

Economics

Commodity products are

a. rare and expensive b. patented and licensed c. highly differentiated d. uniform or standardized e. ones without impurities

View

Economics

The Golden Rule "Do unto others as you would have done unto you" is an example of the economic concept of:

A. marginal utility. B. altruism. C. reciprocity. D. selfishness.

View

Economics

Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.