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
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The demand curve for labor of Coca-Cola manufacturers will shift to the right if the
a. wages of Coca-Cola workers decrease b. price of Coca-Cola decreases c. supply curve of Coca-Cola workers shifts to the left d. price of Pepsi decreases e. new technology shifts the MPP of Coca-Cola workers to the right
Firms operating in competitive markets have little choice but to innovate
a. True b. False Indicate whether the statement is true or false
The cross elasticity of demand between DVDs and DVD players is likely to be
a. zero. b. positive. c. negative. d. undefined.
Refer to Figure 5-16. What is the optimal quantity of street lights to install?
A) 3 B) 4 C) 6 D) 9