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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The real interest rate ________
A) is the cost of borrowing adjusted for inflation B) keeps the market for saving and investment in equilibrium C) describes the real benefit of saving D) all of the above E) none of the above
If an ice-cream manufacturer acquires a frozen yogurt producer, you would likely see
a. Lower prices for both the ice cream and the frozen yogurt b. Higher prices for both the ice cream and the frozen yogurt c. Higher prices for ice cream, but lower prices for frozen yogurt d. Higher prices for frozen yogurt but lower prices for ice cream
The Reagan administration's policies were aimed at managing aggregate demand
a. True b. False Indicate whether the statement is true or false
Which of the following can an economist predict with the most accuracy?
a. how Gwen will respond to an increase in the price of down jackets b. how Larry, Terry, and Mateo will respond to a decrease in the price of orange juice c. how a group of ten will respond to an increase in the price of motorcycles d. how a group of 100 will respond to a decrease in the price of cell phones