Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A
B. Falling; A; C
C. Falling; B: C
D. Rising; A; C
Answer: B
You might also like to view...
Suppose the economy is initially in equilibrium where real GDP equals potential GDP and the inflation rate is at the target rate
Other things equal, a housing boom will cause aggregate expenditures to increase, which will result in a new, short-run equilibrium. To return GDP to its potential level, the inflation rate will adjust. With adaptive expectations, this will result in A) an increase in aggregate demand and an increase in the inflation rate. B) a decrease in aggregate supply and an increase in the inflation rate. C) a decrease in aggregate demand and a decrease in the inflation rate. D) an increase in aggregate supply and a decrease in the inflation rate.
The term strategy in terms of game theory refers to
a. the relationship between price and marginal cost b. the relationship between individual firm demand curves and the market demand curve c. each firm's game plan in making decisions d. the interrelationship between price and marginal revenue e. the tendency for collusive firms to generate normal profits
Generally, marginal costs ____ as quantity increases?
A) rise. B) fall. C) remain constant. D) equal marginal benefits. E) equal total costs.
A plumber who quits his job in Indianapolis and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed
A) frictionally B) structurally C) cyclically D) underemployed