-Based on the Diagram Above,starting from a Long-Run Equilibrium at Point

question 62

Multiple Choice

-Based on the diagram above,starting from a long-run equilibrium at point C,a tax cut that increases aggregate demand from ADI to ADI¹ will lead to a short-run equilibrium at point ________,and eventually to a long-run equilibrium at point ________,due to rising inflation and the raising of real interest rates by the Bank of Canada.

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

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Definitions:

Automatically Transfer

The process by which rights, property, or obligations are transferred from one party to another without the need for manual intervention or additional agreement.

Tract

A large area of land.

Minerals Below

Refers to subsurface rights pertaining to minerals like oil, gas, coal, and others that lie beneath the surface of a piece of land.

Public Nuisance

An act or condition that is harmful or annoying to the public in general, significantly interfering with the enjoyment of public rights.