Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe

A. a decrease in aggregate supply and an increase in aggregate demand.
B. a decrease in both real output and the natural rate of unemployment.
C. a decrease in real output and an increase in the price level.
D. a decrease in real output and an increase in the natural rate of unemployment.


Answer: C

Economics

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Consider the budget line in the above figure. If the consumer's income is $240, then the price of a movie is

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Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection

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Economics