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
Economics
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For a perfectly competitive firm at its long-run competitive equilibrium point
A) P = AR = MR = LATC = SATC = MC. B) P = AR = MR = LATC > SATC = MC. C) P = AR = MR = MC = LATC = AVC. D) P > MR > AR > MC > LATC > SATC.
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The increased willingness of employers to hire strikebreakers, and the increased willingness of workers to cross picket lines, help explain why unions have grown more reluctant to strike
Indicate whether the statement is true or false
Economics