A year-long drought that destroys most wheat crops for the season would:
A)shift the aggregate demand curve only.
B)shift the aggregate demand curve,and the short-run aggregate supply curve would shift in response.
C)shift the short-run aggregate supply curve only.
D)shift the short-run aggregate supply curve and the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

A drought that destroys wheat crops would decrease the short-run aggregate supply due to reduced availability of wheat, but it would not affect aggregate demand or the long-run aggregate supply.

A Year-Long Drought That Destroys Most Wheat Crops for the Season