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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When prices do not change very much, the income-expenditure model can be used to understand economic fluctuation in the
A) long run. B) fiscal year. C) short run. D) federal budget allocation.
For an economy, aggregate demand equals
a. consumption plus investment plus government purchases plus exports. b. consumption plus investment plus government purchases plus (exports minus imports). c. consumption plus investment plus (taxes minus transfers) plus (exports minus imports). d. consumption plus investment plus government purchases plus (imports minus exports).
A system that guarantees that depositors will not lose money even if the bank goes bankrupt is known as
A. deposit insurance. B. banking regulation.. C. reserve. D. None of the above is correct.
Measured distributions of wealth that do not consider the role of human capital
A) are more equal than the distribution of income. B) overstate the inequality in wealth distribution. C) are more equal than the distribution of consumption. D) understate the inequality in wealth distribution.