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
You might also like to view...
Total fixed cost is the cost of
A) labor. B) production. C) a firm's fixed factors of production. D) only implicit factors of production. E) only explicit factors of production.
Refer to the graph shown. From 1980 to 1985, the U.S. dollar appreciated over 60 percent. The effect of this appreciation on the AD curve can be shown by a movement from:
A. A to B. B. A to C. C. A to D. D. B to A.
The buyer side of the market is known as the:
A. income side. B. seller side. C. demand side. D. supply side.
Which of the following DVC policies is not likely to increase DVC economic growth?
A. Privatizing state industries. B. Controlling population growth. C. Restricting direct foreign investment from abroad. D. Building human capital.