Suppose That the Actual and Expected Price Levels Are Initially

question 165

Multiple Choice

Suppose that the actual and expected price levels are initially equal,and that the expected price level rises.Which of the following will occur over the long run? (Hint: Recall the actual price level is on the vertical axis.)

• A)The economy will move rightward along the short-run aggregate supply curve.
• B)The economy will move leftward along the short-run aggregate supply curve.
• C)The short-run aggregate supply curve will shift to the right.
• D)The short-run aggregate supply curve will shift to the left.
• E)The short-run aggregate supply curve will become flatter.

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Desegregation

The process of eliminating racial segregation, typically referring to legal and social efforts to end the separation of racial or ethnic groups in various sectors of society.

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A policy or system where bus transportation is provided to all people within a certain area, often for free or at a universal rate.

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The educational institutions and organizational structure designed to provide secondary education and prepare students for higher education or the workforce.

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