What is an example of a positive external shock to aggregate supply?
(A) China announces that it will import 50 percent more corn from the United States.
(B) Demand for new suburban houses increases the value of farmland.
(C) Good weather leads to an unusually productive harvest for corn farmers.
(D) A popular new diet encourages consumers to buy more corn flakes.
Ans: (C) Good weather leads to an unusually productive harvest for corn farmers.
You might also like to view...
If the United States imposes a tariff of $5 per bottle on French wine, the most likely effect will be to raise the:
A) price of wine in the United States by more than $5 per bottle. B) price of wine in the United States by $5 per bottle. C) price of wine in the United States by less than $5 per bottle, and lower the price of wine in France by less than $5 per bottle. D) price of wine in the United States by less than $5 per bottle without affecting the price of wine in France.
The term "derived demand" refers to
A) a firm's estimated demand curve derived from sales data. B) the demand for a factor of production that is derived from the demand for the good the factor produces. C) the demand for financial products called derivatives. D) a demand curve that derives from the availability of resources.