If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and higher level of output.
C. higher price level and higher level of output.
D. lower price level and lower level of output.
A. higher price level and lower level of output.
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Refer to Figure 15-10. The deadweight loss due to a monopoly is represented by the area
A) GEH. B) FGE. C) FQ1Q2E. D) FHE.
Which of the following is true of a natural monopoly? a. The quantity supplied in the market is less than the quantity at which the long-run average cost is minimum. b. The quantity supplied in the market is equal to the quantity at which the long-run average cost is minimum. c. The firm produces at the minimum point of the marginal cost curve
d. The quantity demanded in the market corresponds to the price at which the marginal revenue and marginal cost curves intersect.
Empirical analysis uses ______ to test a hypothesis.
a. subjectivity b. data c. rationality d. correlation
The price ceiling that was used to control the price of housing in New York City and other cities was called ____________ .
a. rent control b. rent abatement c. housing control d. equilibrium price