If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and lower level of output.
C. higher price level and higher level of output.
D. lower price level and higher level of output.
Answer: A
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Demand is said to be unit elastic if quantity demanded
a. changes by the same percent as the price. b. changes by a larger percent than the price. c. changes by a smaller percent than the price. d. does not respond to a change in price.
Which one of the following statements is true about the Affordable Care Act?
a. The final version of the ACA passed without a single Republican voting for its passage. b. The final version of the bill that passed was closer to the House version than the Senate version. c. As proponents promised, only high-income taxpayers are paying the new taxes included in the legislation. d. The typical family is now paying less for their health insurance thanks to the strict health insurance regulations included in the act.