Refer to the given figure.
________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A; C
B. Falling; A; B
C. Falling; A; C
D. Rising; B; C
Answer: A
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Which of the following measures can give some indication of the quality of life in an economy?
A. Child mortality B. Literacy rates C. Life expectancy D. All of these help to assess quality of life.
Starting at full employment (RGDPNR), a. expansionary monetary policy can potentially result in increased real output, but only in the short run
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run. c. contractionary monetary policy can potentially result in increased real output, but only in the short run. d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.
Explain why the marginal propensity to save and the marginal propensity to consume sum to 1
Opportunity cost is the value of the next best alternative that is given up
a. True b. False Indicate whether the statement is true or false