A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
You might also like to view...
When the cost curves have U-shapes, at the point where marginal cost equals average total cost:
A. the fixed cost has been fully depreciated. B. average fixed cost is rising. C. average total cost is at its minimum. D. average variable cost is falling.
Which is NOT an example of an intermediate input?
A. A computer chip factory built in Arizona B. Electricity used in a school C. Toilet paper used in an office D. A new chair for a restaurant dining room
A perfectly competitive industry's market price is found by
A) finding the point on the market demand curve where the largest number of units will be purchased. B) locating the intersection of the market demand and market supply curves. C) the horizontal summation of all the industry firms' individual supply curves. D) identifying the price at which each firm realizes its largest economic profit.
If a price taker attempts to raise its price by a small amount, the quantity that its customers will buy will
A. decrease to zero. B. increase. C. remain constant. D. decrease by a small amount.