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
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If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion, imports are $1 billion, and exports are $2 billion, GDP must equal:
A. $16 billion. B. $17 billion. C. $15 billion. D. $14 billion.
Among the most difficult costs of crime to evaluate might be the
A. market value of material possessions stolen, damaged, or destroyed. B. wages lost due to missed work days following an assault. C. deterioration in quality of life due to physical injury. D. costs of law enforcement activities undertaken because of the crime.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The vertical distance between the total cost curve and the total variable cost curve reflects
a. profit per unit. b. total fixed cost. c. marginal cost. d. the principle of diminishing marginal returns.