-In the above figure, if the economy is at point A, which of the following is true?
A) Money wages can be expected to fall.
B) Point A is the long-run equilibrium point.
C) The economy is in a recession.
D) The economy might be at point A as a result of a recent cut in the tax rate.

Question

-In the above figure, if the economy is at point A, which of the following is true?
A) Money wages can be expected to fall. 
B) Point A is the long-run equilibrium point. 
C) The economy is in a recession. 
D) The economy might be at point A as a result of a recent cut in the tax rate.

Quizplus · Accepted Answer

The economy is at point A as a result of a recent cut in the tax rate.

-In the Above Figure, If the Economy Is at Point