The series of ups and downs the economy tends to move in is called

What is the real-balance effect of an increase in the price level?

What will be an ideal response?

Suppose the price of tomatoes dramatically increases. Which of the following could cause this change?

A. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right B. Hurricanes during the late summer damage the Florida crop, shifting supply left C. Advertising for ketchup increases demand for ketchup, shifting the demand curve to the left D. A reduction in tariffs of tomatoes from Central American, shifting supply right