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

question 99

Multiple Choice

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

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

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Definitions:

Frequency Theory

The hypothesis that the frequency of a sound wave is directly related to the perception of the sound's pitch, as the auditory nerve fires at the same rate as the sound frequency.

Timbre

The quality or color of sound that distinguishes different types of sound production, such as voices or musical instruments.

Overtones

Additional, often subtle, qualities or implications beyond the explicit or primary meaning of something.

Trichromatic Theory

A theory of color vision that proposes three types of color receptor cells in the eye, each sensitive to red, green, or blue.