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...
Public choice refers to how
a. much publicity a government-sponsored project receives b. members of government make choices that promote their own self-interest (to keep their jobs) c. the public makes choices about what types of goods to buy d. private decisions often end up becoming public e. supply and demand curves reflect public opinion
The existence of a deadweight loss associated with a monopoly can be seen because
A) consumers are willing to pay more for the last unit of output than it costs to produce. B) the cost of the last unit produced is more than consumers are willing to pay for it. C) the producer surplus is larger than in a competitive market. D) None of the above.
If the substitution effect of a wage change outweighs the income effect of a wage change, the labor-supply curve is
A. upward sloping. B. backward bending. C. vertical. D. horizontal.
Both Eastman Kodak and International Harvester were found guilty of antitrust violations under the Sherman Act.
Answer the following statement true (T) or false (F)