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 asĀ 
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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Which of the following classifications is correct?
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Production of Hollywood movies is an increasing cost industry. Which of the following contributes the most to this condition?
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The Fed's founders viewed the Fed as a means of maintaining the money supply during economic contractions and as a lender of last resort
a. True b. False Indicate whether the statement is true or false
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