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Refer to the Given Figure

Question 89

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Refer to the given figure. Refer to the given figure.   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) aggregate demand shifting leftward. B) short-run aggregate supply shifting upward. C) short-run aggregate supply shifting downward. D) long-run aggregate supply shifting leftward. 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) aggregate demand shifting leftward.
B) short-run aggregate supply shifting upward.
C) short-run aggregate supply shifting downward.
D) long-run aggregate supply shifting leftward.

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