Suppose a country experiences a change in weather patterns that makes farming more difficult. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?
The short-run and long-run aggregate-supply curves would shift to the right.
You might also like to view...
From time to time, the Federal Reserve buys back government bonds from the private sector through a process called
A) voluntary redemption procedures. B) backflip bond investments. C) open market purchases. D) bond recall procedures.
Disintermediation refers to the
A) failure of financial intermediaries due to moral hazard problems. B) failure of financial intermediaries due to adverse selection problems. C) movement of savers and borrowers from banks to financial markets. D) removal of government regulations of financial intermediaries.
If the supply curve is perfectly inelastic and an excise tax is imposed
a. all of the tax is paid by buyers b. all of the tax is paid by sellers c. the market price will rise by the amount of the tax d. the market price will fall by the amount of the tax e. the tax is divided equally between buyers and sellers
Economists who believe that the recent rise in the average rate of productivity growth may be long-lasting claim that the above-normal economic growth in the United States between 1995 and 2009 was caused by:
A. increases in the rate of personal saving. B. increased entrepreneurial activity, application of information technology, and global competition. C. rising Federal budget surpluses that reduced real interest rates. D. expansionary monetary policy.