Suppose the economy in the diagram below is in long-run equilibrium. If government spending decreases and causes a movement from point A to point B in the diagram below, what are the short-run effects? Explain fully.
What will be an ideal response?
Question 2
Which of the following is a property of a good economic question?
A) A good economic question should never incorporate elements from disciplines other than economics.
B) A good economic question should always have a single solution.
C) A good economic question can be answered.
D) A good economic question always addresses topics that are important to the whole society and not to an individual economic agent.