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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Describe the difference between technology and positive technological change
What will be an ideal response?
U.S. exports involve an:
A. inflow of foreign currency from foreigners to the U.S. economy. B. outflow of dollars from the United States to foreigners. C. outflow of foreign currency from the United States to foreigners. D. inflow of dollars from foreigners to the U.S. economy.
Figure 10-3
In Figure 10-3, both graphs (a) and (b) indicate that the economy is experiencing a(n)
a.
recessionary gap of RE.
b.
recessionary gap of RG.
c.
inflationary gap of RG.
d.
inflationary gap of RE.
If Trent's MPC is .80, this means that he will:
A. spend eight-tenths of any increase in his disposable income. B. spend eight-tenths of any level of disposable income. C. break even when his disposable income is $8,000. D. save two-tenths of any level of disposable income.