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
You might also like to view...
Scarcity implies that
A) the satisfaction of one person's want means another person's want can also be satisfied. B) the satisfaction of one person's want means another person will be more than satisfied. C) the satisfaction of one person's want means another person's want cannot be satisfied. D) no person's wants can be satisfied.
During the colonial period, the largest cities were typically
a. port towns. b. located in the hinterland. c. in the South. d. landlocked.
Which of the following statements is true?
A. There are more attainable points than unattainable points in every PPF diagram. B. If scarcity did not exist, neither would a PPF. C. All PPFs are downward-sloping straight lines D. The concept of opportunity costs cannot be illustrated within a PPF framework.
Which of the following best describes the difference between cost-of-service regulation and rate-of-return regulation?
A) Costs determine prices in cost-of-service regulation and prices determine costs in rate-of-return regulation. B) Costs determine prices in cost-of-service regulation and prices are set in rate-of-return regulation so the firm can make a normal rate of return. C) Variable costs determine prices in cost-of-service regulation and prices are set in rate-of-return regulation so the firm can make an economic profit. D) Regulators determine prices in cost-of-service regulation and market forces determine prices in rate-of-return regulation.