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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In the above figure, using the slope across an arc, the slope of the curve between points b and c is
A) 1/3. B) -1/3. C) 3. D) -3.
Securities are? ____ for the person who buys? them, but? ____ for the? individual/firm that sells them.
A) assets; liabilities B) liabilities; assets C) income; liabilities D) liabilities;
For normal goods which of the following explains why demand curves slope downward?
A) prices and income B) substitutes and complements C) resources and technology D) substitution effect and income effect
The use of strategic bombing by the Allies during World War II:
a. caused a marked decrease in Axis munitions production. b. caused Germany to divert significant resources to air defense. c. used the various air forces as an aid to the ground or sea forces. d. was intended to attack the civilian population. e. Only b and d are correct.