The short-run average cost curve shows the lowest possible average cost corresponding to each output level, assuming that all inputs are variable

Which of the following will result in secular deflation?

A) a one-time rightward shift of the long-run aggregate supply curve B) continuous rightward shifts of the aggregate demand curve C) continuous rightward shifts of the long-run aggregate supply curve D) a one-time rightward shift of the aggregate demand curve

One advantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is

A) it is easier for central banks to control inflation. B) there is no need for government intervention. C) it allows greater exchange rate stability. D) it eliminates the possibility of depreciation during a recession.