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; A
B. Falling; A; C
C. Falling; B: C
D. Rising; A; C
Answer: B
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Incremental benefits refer to the
a. accumulated gains linked to environmental policy b. total social benefits of avoiding ecological damage c. reduction in environmental damages associated with an environmental policy initiative d. none of the above
Refer to Figure 29-1. Currency speculators believe that the value of the euro will increase relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would increase and the economy moves from A to D to C. B) Supply would increase, demand would increase and the economy moves from D to A to B. C) Supply would decrease, demand would decrease and the economy moves from B to C to D. D) Supply would increase, demand would decrease and the economy moves from C to B to A.
Everything else held constant, when actual output exceeds the natural rate of output ________ aggregate supply ________
A) short-run; decreases B) short-run; increases C) long-run; increases D) long-run; decreases
To derive the demand curve from the indifference map
A. vary income while holding the prices constant. B. vary the price of one good while holding the price of the other good and income constant. C. vary the prices of both goods while holding income constant. D. vary the price of one good and income while holding the price of the other good constant.