Suppose that a drought significantly reduces agricultural production one year. Which of the following would likely occur as a result of the bad weather?
A) The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the right.
B) The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the left.
C) The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the right.
D) The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the left.
Correct Answer:
Verified
Q12: In the long run,if the Fed increases
Q19: If the Federal Reserve increases the rate
Q27: The natural rate of unemployment
A)is constant over
Q33: In the long run,if the Fed decreases
Q39: The natural rate of unemployment
A)is constant over
Q45: A favorable supply shock shifts the short-run
Q47: In response to an adverse supply shock,suppose
Q55: If the Fed wants to reverse the
Q276: If the Fed wants to reverse the
Q277: Suppose that a drought significantly reduces agricultural
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents