If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and lower level of output.
C. higher price level and higher level of output.
D. lower price level and higher level of output.
Answer: A
You might also like to view...
Who tends to be generally very much against labor migration?
A. The migrant workers B. The labor unions in the country of origin C. The firms in the destination country D. The labor unions in the destination country
What is meant by the "law of one price"? In discussing the law of demand, Hubbard and O'Brien claim there has been no evidence of an exception to the law (that is, no evidence of an upward-sloping demand curve)
Are there exceptions to the law of one price?
Adam Smith's book, one of the first systematic treatments of economics, was entitled
a. The Plan of the Ages. b. The General Theory of Money, Taxes, and Income. c. The Wealth of Nations. d. Principles of Economics. e. Concepts in Moral Philosophy.
Recall the Application about rising oil prices and their effect on the U.S. economy to answer the following question(s).What does "the U.S. is a net exporter of petroleum products" mean? How can we be a net exporter when we still import oil from other countries?
What will be an ideal response?