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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In the money market, an excess demand for money is equivalent to an excess demand for bonds
Indicate whether the statement is true or false
Economics
According to supply-side advocates, the increase in government regulatory activity in the late 1960s slowed economic growth
a. by increasing the cost of producing a given output. b. by requiring capital formation that contributes to increased productivity in terms of measured output. c. only temporarily until there was an adequate adjustment period. d. Both a and b
Economics