Refer to the accompanying figure.
Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. A; C
B. A; B
C. B; A
D. B; C
Answer: A
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The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period
A) is willing to sell B) actually sells C) needs to sell D) should sell
Life insurance companies are regulated by state governments because
A) they have never experienced bankruptcy. B) they have never experienced profitability. C) they have never experienced widespread failures. D) they hold only highly liquid assets.
In the steady state in the Solow growth model, the economy is in equilibrium with the capital-labor ratio and real GDP per worker ________, and with capital, labor, and real GDP ________
A) constant; constant B) growing; constant C) constant; growing D) growing; growing
When the slope of a country's production set declines, it implies:
a. the production set has shrunk. b. the marginal cost of producing the good measured on the Y-axis has fallen. c. the marginal cost of producing the good measured on the Y-axis has increased. d. the marginal cost of producing the good measured on the X-axis has fallen.