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
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Refer to Figure 12-2. Suppose the firm is currently producing Q2 units. What happens if it expands output to Q3 units?
A) It makes less profit. B) It will be moving toward its profit maximizing output. C) Its profit increases by the size of the vertical distance df. D) It incurs a loss.
When the Fed sells $100 worth of bonds to a primary dealer, reserves in the banking system
A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100.
If the interest rate is 8% and $1 will be paid to you in 3 years, what is the present value of that dollar (to the nearest tenth of a cent)?
What will be an ideal response?
The rational outcome of a low-price guarantee policy is that:
A. both firms will sell at the low price. B. one firm will sell at a low price and the competitor will sell at a high price. C. both firms will sell at the high price. D. consumers will be better off.