Natural disasters (such as the 2011 earthquake and tsunami in Japan) are examples of an adverse supply shock, which result in the SRAS curve shifting leftward

Tastes are starting to change for hybrid vehicles such that consumers are purchasing more hybrid vehicles and suppliers are choosing to produce more hybrid vehicles than they were five years ago

Due to the change in tastes, equilibrium price has fallen and equilibrium quantity has increased relative to the hybrid market from five years ago. What is the likely cause of this result? A) Supply increased by more than demand. B) Demand increased by more than supply. C) Demand and supply increased by the same amount. D) Only supply increased.

A logical explanation for recessions might be that households have suddenly altered their willingness to work. A problem with this explanation is

a. it is inconsistent with patterns of job searches during recessions b. the demand for labor rarely shifts c. the large number of women who entered the labor force in the last four decades d. it is inconsistent with the classical model e. the work ethic that is responsible for the decline in American vacations