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
You might also like to view...
Suppose a market is currently served by an incumbent firm. If a potential entrant can enter prior to the incumbent firm announcing its output (or price), the incumbent cannot deter entry through its actions.
Answer the following statement true (T) or false (F)
An example of a public good is national defense services
Indicate whether the statement is true or false
An equilibrium in the labor market is a situation in which:
A. there is no pressure for wages to change. B. there is no unemployment. C. wages exceed minimum wage. D. marginal revenue product equals the wage.
Which of the following is a transfer payment? I. Social Security II. Unemployment benefits
A) I only B) II only C) Both I and II D) Neither I nor II