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 upward
C. Short-run aggregate supply shifting downward
D. Aggregate demand shifting leftward
Answer: B
You might also like to view...
Refer to the scenario above. The principal in this case is ________
A) $10 B) $300 C) $3,000 D) $3,300
Common property often results in
A) a negative externality. B) a social benefit. C) a private cost. D) exclusive rights of ownership.
If a perfectly competitive industry is neither expanding nor contracting, we would typically expect that: a. accounting profits to be zero
b. economic profits to be zero. c. the price of the good will be stable d. both (b) and (c) would be true.
During the Vietnam War, Congress increased government expenditures while raising taxes. As a result we know that:
A. What happened to the AD curve is unclear. B. the AD curve remained unchanged. C. the AD curve shifted to the left. D. the AD curve shifted to the right.