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 downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward


Answer: B

Economics

You might also like to view...

Use the graph below to answer the next question.Other things equal, an increase the wages of nurses in the United States would:

A. move from b to a on D1. B. move from a to b on D1. C. shift from D2 to D3. D. shift from D3 to D2.

Economics

What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain

What will be an ideal response?

Economics

Social disapproval carries a higher cost in all of the following cases except when you:

A. care about the opinions of people around you. B. expect to interact with the people around you again in the future. C. know the people around you. D. have very loose interactions with community members.

Economics

Equilibruim Quantity

What will be an ideal response?

Economics