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Refer to the Figure Below

Question 22

Multiple Choice

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 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) Aggregate demand shifting rightward B) Aggregate demand shifting leftward C) Short-run aggregate supply shifting downward D) long-run aggregate supply shifting leftward


A) Aggregate demand shifting rightward
B) Aggregate demand shifting leftward
C) Short-run aggregate supply shifting downward
D) long-run aggregate supply shifting leftward

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