Graphically, Long-Run Equilibrium Occurs at the Intersection of the Aggregate

question 46

Multiple Choice

Graphically, long-run equilibrium occurs at the intersection of the aggregate demand curve and:

• A)the aggregate supply curve and potential output.
• B)the planned aggregate expenditure line.
• C)the aggregate supply curve.
• D)potential output.

Evaluate the impact of government policies on economic development and growth.

Understand the use of experimental and non-experimental methods in economic studies.

Assess the effects of corruption on production costs and economic efficiency.

Acknowledge the impact of social overhead capital on economic growth.

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Definitions:

Tax Expenditures

Tax expenditures are government revenue losses attributed to tax provisions allowing special exclusions, exemptions, or deductions from taxable income or providing tax credits.

National Treasury

The government department responsible for developing and implementing the country’s financial and tax policies, managing government revenue, and economic policy.

Indexed Social Benefit

Social security or welfare benefits that are adjusted (indexed) over time to maintain their value in the face of inflation or other economic changes.

Federally-Run Program

A government program directly overseen and administered by a federal agency or department.