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

Economics

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Private disposable income equals GDP ________

A) minus corporate profits and net factor income B) plus transfer payments and net exports C) plus depreciation, transfer payments, and interest payments on government debt D) plus net factor income minus net government income E) none of the above

Economics

"Last October, due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween season. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million"

Based on this statement, it is certain that the A) demand curve for Halloween costumes shifted leftward. B) price elasticity of demand for pumpkins decreased from its value in previous years. C) demand curve for pumpkins shifted leftward. D) total revenue from the sale of pumpkins decreased.

Economics

The paradox of value refers to the fact that

A) different consumers value the same items differently. B) the value of a good depends on its total utility. C) water costs little, while diamonds cost a lot. D) water brings little consumer surplus.

Economics

Assume that the U.S. labor force consists of 185 million workers and that 17.5 million are officially unemployed. Calculate the unemployment rate

a. 11.4 percent b. 10.0 percent c. 9.5 percent d. 7.5 percent e. 10.8 percent

Economics