Suppose that a drought significantly reduces agricultural production one year. Which of the following would likely occur as a result of the bad weather?
a. The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the right.
b. The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the left.
c. The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the right.
d. The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the left.
c
You might also like to view...
Refer to the table above. When does diminishing marginal returns to capital set in?
A) When the second machine is used B) When the third machine is used C) When the fourth machine is used D) When the fifth machine is used
What must be true in a perfectly competitive equilibrium?
a. the marginal product of labor is equal to the real wage for every unit of labor. b. the marginal product of labor is equal to the money wage for the last unit of labor. c. the marginal product of labor can be less than the real wage for some units of labor. d. the marginal product of labor can be greater than the price level for some units of labor. e. the marginal product of labor only has to be equal to the real wage for the last unit of labor.
Which of the following statements is a normative as opposed to a positive economic statement?
A) Consumer spending generates more jobs. B) If the price of gasoline goes up, people buy less. C) Labor unions should be allowed to organize in every industry. D) Government intervention in markets is common in many countries.
Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?
A) Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability—limited to the value of their shares. B) Legally the corporation continues to exist even if one or more owners cease to be owners. C) Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital. D) Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.