Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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What do economists call movements of labor and capital between nations?
What will be an ideal response?
For which of the following types of firm does the average revenue curve coincide with the marginal revenue curve?
a. A monopolist b. An oligopoly firm c. A monopolistically competitive firm d. A perfectly competitive firm e. A monopsonist
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a. rises. b. falls. c. rises only if the prices of goods today rise. d. falls only if the prices of goods today fall.