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
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Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________
If the economy moves into a recession, the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above the publicly announced goal for inflation. A) the Taylor Rule B) the gold standard C) the monetarist school of thought D) inflation targeting
A business fluctuation when the pace of business activity is speeding up is known as
A) a contraction. B) a trough. C) an expansion. D) a recession.
Adolph Wagner wrote that the public sector would continuously and inevitably expand due to
a. bureaucratic self-interest. b. the "tyranny of the status quo". c. labor's increasing demand for social justice. d. increasing demand for military protection from international threats.
When marginal cost is below average total cost:
a. total cost is falling. b. total cost is rising. c. average total cost is falling. d. average fixed cost is rising. e. total variable cost is falling.