What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if new EPA regulation, which prohibit the use of certain pesticides and herbicides widely used by cotton farmers, are introduced?

Ceteris paribus, in the short run following a decrease in the rate of growth in aggregate demand, we would expect to see an increase in the rate of unemployment and a decrease in the rate of inflation

Indicate whether the statement is true or false

According to the "self-correcting mechanism" in the AD-AS framework, ________

A) the aggregate demand curve shifts up or down as needed to bring the economy to full employment B) the inflation rate changes as needed to move the economy along the short-run aggregate supply curve until output is at potential output C) the long-run aggregate supply curve shifts until it intersects both the aggregate demand and short-run aggregate supply curves at a single point D) inflation and expected inflation are unaffected by deviations of output from potential output E) none of the above