Which of the following will most likely result from an unanticipated decrease in aggregate supply due to unfavorable weather conditions in agricultural areas?
A) a decrease in inflation
B) a decrease in unemployment
C) an increase in the general level of prices
D) an increase in the natural rate of unemployment

Question

Quizplus · Accepted Answer

An unanticipated decrease in aggregate supply due to unfavorable weather conditions in agricultural areas would result in a decrease in the availability of crops and agricultural products. As a result, there would be a shortage of supply for these goods, leading to an increase in their market prices, and thus an increase in the general level of prices. This could lead to inflation.

Which of the Following Will Most Likely Result from an Unanticipated