Based on the figure below. Starting from long-run equilibrium at point C, a favorable inflation shock that decreases 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. A; C
B. B; A
C. B; C
D. A; B


Answer: A

Economics

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The portion of aggregate expenditure that is independent of output is called ________ expenditure.

A. actual B. potential C. autonomous D. planned

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Answer the following statement true (T) or false (F)

Economics