People expect that the El Nino effect will cause drought in Australia in coming years. If most Australian firms expect that their profits will fall during the next five years, Australia's ________ this year.
A) short- run aggregate supply will increase
B) long- run aggregate supply will increase
C) aggregate demand will increase
D) aggregate demand will decrease
Correct Answer:
Verified
Q117: Q123: When real GDP exceeds potential GDP, then Q124: Q125: The aggregate demand curve shows that, if Q126: If you have $5,000 in wealth and Q127: Which of the following does NOT shift Q129: The quantity of real GDP demanded equals Q130: A change in the money wage rate Q132: When the price level rises, the long-run Q133: Which of the following shifts the aggregate![]()
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