Due to global warming, a country's climate has changed over the years. 30 years ago, it used to rain for almost three months. However, for the past two years, the rainy season has hardly lasted for two weeks. If this change in climate adversely affects agricultural productivity and crop yield, it will cause:
a. the long-run aggregate supply curve to shift rightward
b. the long-run aggregate supply curve to shift leftward.
c. an upward movement along the long-run aggregate supply curve.
d. a downward movement along the long-run aggregate supply curve.
b
You might also like to view...
Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
If we plot the quantity of aluminum ore mined per year on the horizontal axis and the real annual price of aluminum ore on the vertical axis, we find that the path of price-quantity combinations generally indicates lower real prices and higher
quantities over time. Which of the following statements is a plausible explanation for this observed outcome? A) Aluminum supply shifted leftward faster than the aluminum demand curve shifted rightward. B) Aluminum supply shifted rightward faster than the aluminum demand curve shifted rightward. C) Aluminum supply shifted rightward and aluminum demand remained constant. D) both A and B above E) both B and C above
Based on the above figure, if countries "A" and "B" faced the production possibilities curves above, both countries would benefit if
A) they did not trade. B) "A" produced industrial goods, and "B" produced agricultural goods. C) "B" produced industrial goods, and "A" produced agricultural goods. D) they both produced both industrial and agricultural goods.
If C = $1,000 + 0.8(Y) and intended investment is $4,000 . then the equilibrium level of national income will be
a. $3,200 b. $25,000 c. $7,778 d. $13,200 e. $14,000