Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting upward
C. Short-run aggregate supply shifting downward
D. Aggregate demand shifting leftward
Answer: B
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Airlines can increase profits by charging higher fares to business customers because those customers have a more elastic demand for airline travel
a. True b. False Indicate whether the statement is true or false
What is the annual rate of economic growth in Japan if real GDP at the beginning of the year is 11.9 trillion yen and real GDP at the end of the year is 11.1 trillion yen?
a. 0.65% b. -6.7% c. 1.9% d. 0.008% e. -6.25%
Which of the following statements is a major criticism of a pure monopoly as a source of allocative inefficiency?
A. A pure monopoly fails to expand output to the level where the price of an additional unit is just equal to its marginal cost. B. A pure monopoly will always generate economic profit, and that means that prices are too high. C. A pure monopoly has an unfair advantage because it can purchase labor at a lower price than perfectly competitive firms can. D. A pure monopoly has no incentive to produce efficiently, because even the inefficient pure monopoly can be assured of economic profits.
Which of the following is not a consequence of the Fed changing the required reserve ratio?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Decreasing the ratio will increase excess reserves. C) Increasing the ratio will decrease the amount of reserves banks have to loan. D) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.