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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The aggregate supply curve (short run) is upward-sloping because ________.
A. wages and other resource prices are flexible upward but inflexible downward B. the price level is flexible upward but inflexible downward C. wages and other resource prices match changes in the price level D. per-unit production costs rise as the economy moves toward and beyond its full-employment real output
If real GDP per capita in the United States is $8,000, what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?
A) $8,520 B) $9,280 C) $9,365 D) $10,560
A sharp movement in exchange rates can most likely lead to dramatic changes in profits and losses for which of the following?
a. an international travel agency b. a provider of domestic services c. a local bank d. a microbrewery
The term economists use to describe a situation in which the economy's overall price level is rising is
a. growth. b. inflation. c. recession. d. expansion.