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...
Four firms agree to operate as a monopoly and charge the monopoly price of $15 for their product and (jointly) produce the monopoly quantity of 25,000 units. If the competitive price for the product is $8, under the Clayton Act these four firms face treble damages of ________.
A) $525,000 B) $3,000,000 C) $1,000,000 D) $175,000
The twosector (manufacturing and agriculture) specific factors model assumes:
a. that there are increasing returns to labor. b. that there are diminishing returns to labor. c. that there are diminishing returns to capital in the agricultural sector. d. that there are diminishing returns to land in the manufacturing sector.
Money is not an economic resource because:
A. money, as such, does not produce anything. B. idle money balances do not earn interest income. C. it is not scarce. D. money is not a free gift of nature.
Using the five criteria in the book, explain how U.S. currency is suitable to use as a medium of exchange
What will be an ideal response?