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...
Arrange the following goods from least to most elastic, explaining your ordering: gasoline, Exxon gas, Exxon gas at a particular gas station
Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. Assume that initially there is free trade. If the United States allowed drilling for more oil in the Gulf of Mexico, it could
A. decrease the demand for domestic oil. B. reduce the supply of domestic oil. C. reduce U.S. oil imports without a tariff. D. increase the domestic price of oil.
What happens to the demand curves of the existing firms when new firms enter into a monopolistic competitive market?
What will be an ideal response?
All food bought in the United States has an ingredient list on the packaging. This is an example of:
A. building a reputation. B. screening. C. requiring the more informed party to reveal missing information. D. signaling.