Based on the Figure Below

question 33

Multiple Choice

Based on the figure below. 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.

• A) D; B
• B) D; C
• C) B; C
• D) A; B

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Definitions:

Wright Line Test

A legal standard used in labor law to determine if an employee's activity was a motivating factor in an employer's decision to take action against the employee.

Applied Practice

The practical application of theoretical knowledge in real-world settings, particularly in professional and technical fields.

Public Sector

The part of the economy that is controlled by the government, including civil service, government agencies, and publicly funded services.

Collective Bargaining

Dialogue between a workforce collective and company representatives to establish working terms and conditions.