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

Economics

You might also like to view...

A person is ________ to the degree that he or she is willing to invest time, energy, and his or her sense of self in attaining conventional goals

Fill in the blank(s) with the appropriate word(s).

Economics

Refer to the information above. An economy's real GDP per person doubles every 18 years when it maintains a growth rate of ________ per year

A) 5.6 percent B) 4.0 percent C) 0.25 percent D) 0.9 percent

Economics

An elimination heuristic makes the choice on the basis of all the categories in which the events differ

Indicate whether the statement is true or false

Economics

In the circular flow model of the economy, the resource market is where

a. consumers purchase consumer goods and services b. firms purchase goods and services c. consumers supply goods and services d. firms purchase labor, land, and capital e. consumers purchase labor and capital

Economics