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...
The unemployment rate equals the number of persons:
A. unemployed divided by the number employed. B. unemployed divided by the number in the labor force. C. unemployed divided by the population age 16 and over. D. not working divided by the population age 16 and over.
If autonomous investment decreases by $60 billion, equilibrium real GDP demanded will
What will be an ideal response?
The long-run equilibrium of monopolistic competition is characterized by
A. P = MC > ATC. B. P = MR = MC. C. P = ATC > MC. D. P = MC = ATC.
Suppose anyone with a driver's license is capable of supplying one trip from the airport to the downtown business center on any given day. The long-run supply curve of such trips is horizontal at p = $50, which is the average cost of such trips. Suppose daily demand is Q = 1000 - 10p. Calculate the change in consumer surplus, producer surplus and social welfare if the city government requires
those people supplying such trips to possess a special license, and the government will issue only 300 licenses. What will be an ideal response?