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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Which of the following is likely to lead to a right shift in the supply curve of cotton?
A) A rise in labor costs due to wage demands by labor unions B) A decrease in the price of cotton C) An increase in labor productivity due to training programs D) An increase in the price of cotton
For a monopoly, marginal revenue is equal to
A) the amount people buy at a given price. B) the amount people buy between two prices. C) the change in total revenue brought about by a one-unit increase in quantity sold. D) the price multiplied by the quantity sold. E) the price of the product.
Which of the following would shift the AS curve downward?
a. A decrease in the price level b. A decrease in world oil prices. c. An increase in world oil prices. d. A natural disaster that raises unit costs for all firms. e. A loss of technological capability.
Exhibit 12-7 Negative income tax
As shown in Exhibit 12-7, a family of four with no earned income receives ____ from the government.
A. zero payment. B. the break-even income of $40,000. C. a $20,000 payment. D. a $20,000 tax deferment.