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; A
B. Falling; A; C
C. Falling; B: C
D. Rising; A; C
Answer: B
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As shown by the IS-LM model, there are two reasons that the Fed can lose control of the economy. One of these reasons is
A) federal funds rate can never reach zero percent. B) zero federal funds rate is not sustainable. C) household and business borrowers do not base their decision to borrow on interest rates. D) that the zero federal funds rate achieved by the Fed is irrelevant to household and business borrowers.
Common stock differs from preferred stock in that
a. common stock carries a guaranteed interest return b. preferred stock is only issued to the original creators of the corporation c. preferred stock is only issued to the largest investors in the corporation d. common stock carries the right to vote at shareholder meetings e. preferred stock carries the right to vote at shareholder meetings
Which one of the following statements concerning the Second Bank of the United States is not true?
a. It was created five years after the demise of the First Bank of the United States. b. It had the right to issue its own notes. c. It pressed for sounder specie backing of bank notes. d. Its notes became the most widely accepted currency in the nation. e. It faced strong regional resistance in the North.
The smallest component of national income is
A. rent. B. interest. C. profits. D. salaries and wages.