Based on the figure below. Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. B; C
B. B; A
C. A; B
D. A; C
Answer: D
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In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person
A) are technological advances. B) is lower current consumption. C) is higher current consumption. D) is a larger work force.
Between 1870 and 1913, labor migration from the "Old World" (Europe) to the "New World" (the United States, Canada, and Australia):
a. decreased the rate of growth of real wages in the New World and increased the rate of growth of real wages in the Old World. b. increased the rate of growth of real wages in the New World and decreased the rate of growth of real wages in the Old World. c. decreased the rate of growth of real wages in both the New and Old Worlds. d. increased the rate of growth of real wages in both the New and Old Worlds.
Insurance policies in which each firm pays a different price for medical insurance depending upon the past medical bills of the firm's employees are based upon a(n):
A. experience rating. B. community rating. C. asymmetric information rating. D. adverse selection rating.
Interest rates are positive because
A. people prefer future consumption over current consumption. B. usury laws require rates to be very high. C. banks are not competitive. D. people prefer current consumption over future consumption.