-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from
To
1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________,if left to self-correcting tendencies.
A) A;B
B) A;C
C) B;A
D) B;C
E) B;B

Question

-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from 
To 
1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________,if left to self-correcting tendencies.
A) A;B 
B) A;C 
C) B;A 
D) B;C 
E) B;B

Quizplus · Accepted Answer

The Answer of 
-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from 
To 
1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________,if left to self-correcting tendencies.
A) A;B 
B) A;C 
C) B;A 
D) B;C 
E) B;B

-Based on the Diagram Above,starting from a Long-Run Equilibrium at Point