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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Under the conditions set for the taking of property by eminent domain, the government could take private property
A) to build a highway. B) to allow a private developer to construct residential housing. C) so a professional sports franchise can build a new stadium. D) all of the above
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Which of the following best expresses the payment a lender receives for lending money for three years?
A. PV/(1 + i)3 B. 3PV C. FV/ (1 + i)3 D. PV/(1+i)3
Economics