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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In the above figure, a sales tax of $1 per unit imposed on sellers ________ the price buyers pay and ________ the price that suppliers keep for themselves
A) affects; does not affect B) does not affect; affects C) does not affect; does not affect D) affects; affects
In the above figure, a negative relationship between price and quantity is shown in
A) Figure A. B) Figure B. C) both Figure A and Figure B. D) neither Figure A nor Figure B.
When the Phillips curve was viewed as a structural relationship, it was believed that the Fed could
A) permanently reduce the unemployment rate if it were willing to accept an increase in the inflation rate. B) permanently reduce the inflation rate as it permanently reduced the unemployment rate. C) permanently reduce the unemployment rate if it were willing to increase the real interest rate. D) permanently reduce the inflation rate if it were willing to decrease the real interest rate.
The practice of firms temporarily reducing prices in order to eliminate competition is called:
a. competitive pricing. b. predatory pricing. c. discount pricing. d. strategic pricing.