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...
A market structure in which many firms compete by making similar but slightly different products is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
Since the 1970s, the percentage of total income earned by the poorest 20 percent of American families has fallen
a. True b. False Indicate whether the statement is true or false
A highly technical product is more likely to be sold by mass advertising as it signals to the consumers that the product is of dependable quality
Indicate whether the statement is true or false
The "invisible hand" refers to
a. the marketplace guiding the self-interests of market participants into promoting general economic well-being. b. the fact that social planners sometimes have to intervene, even in perfectly competitive markets, to make those markets more efficient. c. the equality that results from market forces allocating the goods produced in the market. d. the automatic maximization of consumer surplus in free markets.