Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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One way to avoid counting the prices of intermediate goods multiple times in computing the value of GDP is to:
A. sum the value added of only producers of final goods and services. B. sum the value added of producers of both intermediate and final goods and services. C. sum the value added of only producers of intermediate goods and services. D. subtract the value added of producers of intermediate goods and services from the value added of producers of final goods and services.
If you own a perpetuity of $100 and if the discount rate is 5 percent, then its present value
a. cannot be determined unless we know the number of years b. is $95.21 c. is $105 d. is $2,000 e. is infinite
When the price of knee braces increased by 25 percent, the Brace Yourself Company increased its quantity supplied of knee braces per week by 75 percent. BYC's price elasticity of supply of knee braces is 0.33
a. True b. False Indicate whether the statement is true or false
Cost pull inflation occurs when the:
A. business cycle becomes sporadic and unpredictable. B. price of necessity goods increases suddenly. C. price of a key input increases suddenly. D. price level changes in response to changes in the business cycle.