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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The process in which economic growth destabilizes existing regimes and reduces the political power of rulers and monarchs is referred to as:
A) institutional destruction. B) polarization. C) division of powers. D) political creative destruction.
When economists and policymakers refer to the Fed's dual mandate, they are referring to:
A) price and exchange rate stability. B) price stability and maximum employment. C) moderate long-term interest rates and maximum employment. D) price stability and moderate long-term interest rates.
If a competitive firm cannot earn a profit at any level of output during a given short-run period, then which of the following is FALSE?
A) It will shut down in the short run and wait until the price increases sufficiently. B) It will exit the industry in the long run. C) It will operate at a loss in the short run. D) It will minimize its loss by decreasing output so that price exceeds marginal cost.
In the federal funds market, _____
a. banks make loans to the Fed b. banks make short-term loans to other banks c. banks make long-term loans to other banks d. the Fed makes short-term loans to private borrowers e. the Fed makes long-term loans to commercial banks