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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According to the short-run Phillips curve, if unemployment is 2.4% and inflation is 3.7%, a decrease in the inflation rate might result in which of the following?
A) an increase in the unemployment rate to 3.4% B) a decrease in the unemployment rate to 3.0% C) a decrease in the demand for labor in the economy D) Both A and C are correct answers.
A market economy provides solutions to almost all social ills such as poverty and environmental damage
a. True b. False Indicate whether the statement is true or false
The additional shifts in aggregate demand that result when there is an increase in government spending is known as the _____
Fill in the blank(s) with correct word
The domestic demand and supply for sugar are Qd = 60,000 ? 400P and QSD = 20,000 + 500P. The foreign supply is QSF = 20,000 + 100P. How many units of sugar will domestic producers supply after the quota is imposed?
A. 35,000 B. 30,000 C. 23,000 D. 58,000