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 downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward

Answer: B

Economics

You might also like to view...

Women bear a disproportionate burden in the agrarian system of Sub-Saharan Africa, Asia and Latin America. In addition their productivity is low. Explain these statements with specific examples from individual developing economies

What measures/policies have been implemented to deal with these two issues? Once again discuss with specific examples from individual developing economies.

Economics

Economists assume consumers select a bundle of goods that maximizes their well-being subject to

A) their budget constraint. B) their income. C) relative prices. D) their marginal rate of substitution.

Economics