Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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A firm will shut down in the short run if
A. MR < AVC. B. MR > AVC. C. AVC < AFC. D. P > MC.
International comparisons of per capita GDP may not reflect the standard of living because __________. a. currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities. b. people in some countries enjoy poverty and do
not mind a lack of access to medicine, education, nutritious food, and safe drinking water. c. markets do not exist in less-developed countries. d. None of the answers above are correct.
The short-run response of quantity demanded to a change in price is usually:
A. greater than the long-run response. B. the same as the long-run response. C. less than the long-run response. D. None of the statements is correct.
One way tariffs differ from quotas is that
A. tariffs produce no revenues but set limits on the imported items. B. tariffs are applied only on raw materials. C. quotas produce revenues for the exporting country's government. D. tariffs produce revenues for the importing country's government.