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
You might also like to view...
Which of the following statements about full employment is correct? I. Full employment means that the unemployment rate is less than 1/2 of 1 percent. II. Full employment means that the transaction costs associated with getting a job are zero
A) I only B) II only C) Both I and II D) Neither I nor II
Who receives income from capital in the United States?
a. bank depositors b. bondholders c. stockholders d. All of the above are correct.
Given the price of a good or service, what determines how much a person is willing to pay for that good or service?
A. total utility B. marginal utility C. average utility D. the substitution effect
A Ponzi scheme has the following characteristics, except:
A. It promises a much higher expected return relative to the investment risk involved B. It seems to involve a significantly lower risk relative to the expected returns promised C. Its implied risk-return combination (or point) lies below the security market line D. Trust plays a very important role, with investors believing in the promoter's ability to somehow prevent arbitrage