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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When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:
A. a recession. B. unemployment. C. inflation. D. an asset-price bubble.
Under which of the following conditions will the actual rate of unemployment tend to rise above the natural rate of unemployment?
a. Prices are stable and have been for the last four years. b. Inflation is 3 percent and was widely anticipated more than a year ago. c. Expansionary monetary policies lead to an unexpected increase in inflation from 3 percent to 7 percent. d. Restrictive monetary policies lead to an unexpected reduction in inflation from 6 percent to 2 percent.
Which of the following economists believed that the factory owner, by paying his workers meager wages, was able to use this surplus to buy more capital goods?
A. Adam Smith B. Thorstein Veblen C. Milton Friedman D. Karl Marx
A shift of the supply curve for farm products to the right in a price inelastic region of the demand curve for farm products
A) reduces price and total revenue. B) increases price and reduces total revenue. C) reduces price and increases total revenue. D) increases prices and total revenue.