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...
Explain the real-nominal principle
What will be an ideal response?
One of the concepts that is illustrated by a downward sloping production possibilities frontier is that
a. technology must change in order to produce more of a particular good b. to produce more of one good, some of the alternative goods must be given up c. opportunity cost generally declines as more of a good is produced d. specialization leads to gains in overall utility for society e. opportunity cost generally does not vary as more of a good is produced
If smokers knew the information cigarette firms conceal about the negative externalities associated with cigarette smoking
a. the supply curve would shift to the right causing price to rise b. the supply curve would shift to the left causing price to fall c. the supply curve would shift to the left causing price to rise d. the demand curve would shift to the left causing price to fall e. the demand curve would shift to the right causing price to fall
Which of the following is good evidence against the classical view of Say's law?
A) Investment does not always rise as interest rates fall. B) Consumption falls by the amount that saving increases. C) Exports are usually greater than imports. D) People save more at higher interest rates than lower interest rates. E) none of the above