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
You might also like to view...
Between 1981 and 1986, as the federal budget deficit increased,
A. consumption spending fell. B. investment spending was crowded out. C. net exports increased. D. net exports were crowded out.
In the equation 
is the _____.
A. dependent variable B. independent variable C. slope parameter D. intercept parameter
Who has a greater opportunity cost of enjoying leisure—a janitor or a surgeon?
a. whoever has the greater income effect b. whoever has the greater substitution effect c. the janitor because his wage is lower d. the surgeon because his wage is higher
At the end of 2014, the economy was ________ and the deficit was ________.
A. well below full employment; entirely cyclical B. at full employment; entirely structural C. not quite at full employment; partially cyclical D. above full employment; entirely structural