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
You might also like to view...
The relationship between MPC and MPS is
a. 1 + MPC = MPS b. 1 – MPC = MPS c. 1 + MPS = MPC d. MPC – MPS = 1 e. MPS – MPC = 1
Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year (and thus enjoy less leisure per year). Based on this scenario, which of the following statements is correct?
a. GDP would definitely increase, despite the fact that GDP includes leisure. b. GDP would definitely increase because GDP excludes leisure. c. GDP could either increase or decrease because GDP includes leisure. d. GDP could either increase or decrease because GDP excludes leisure.
If a country's currency appreciates, the country will experience a ________ in exports and a ________ in imports.
A. rise; rise B. fall; fall C. rise; fall D. fall; rise
Total revenue decreases if price ________ and demand is ________.
A. rises; inelastic B. falls; unit elastic C. rises; elastic D. falls; elastic