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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The difference between the exports and imports of goods in a country is referred to as the
A) balance of payments. B) balance of trade. C) balance of power. D) exchange rate.
The fact that a number of lifeguards lose their jobs at the end of each summer would be counted as
A. structural unemployment. B. frictional unemployment. C. seasonal unemployment. D. cyclical unemployment.
Regarding the costs of regulation, which is a FALSE statement?
A. Regulatory spending by federal agencies has decreased since 1970. B. Automobile safety standards raise the price of cars. C. Pharmaceutical manufacturing safety standards raise the price of drugs. D. Airline safety standards have increased the price of air travel.
Firms in perfect competition produce the allocatively efficient output in the short run and in the long run
Indicate whether the statement is true or false