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...
For many years, dairy farmers would milk their cows and bring the milk to market. After buyers and sellers negotiated all sales, the farmers dumped large quantities of milk into rivers. What does it tell us about that milk market? A free market would not have created an ______, so that in this case there must have been a _________
a. opportunity to dump milk; special permit b. excess supply; price floor c. excess demand; price floor d. excess supply; price ceiling e. excess demand; price ceiling
Monetary neutrality is
What will be an ideal response?
If Utopia has a closed economy, the price of tile is $________ per case, and if it has an open economy the price of tile is $________ per case.
A. 15; 10 B. 15; 20 C. 30; 15 D. 20; 15
Which of the following factors has contributed to rising health care prices in the United States?
A. The supply of physicians per 100,000 people has decreased since 1975. B. Productivity growth in the health care industry has been negative in recent years. C. Improvements in medical technology have significantly increased the number of patients that can be treated each year. D. The supply of physicians per 100,000 people has risen since 1975, but not as fast as the increase in the demand for physicians' services.