If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. Excess supply can be generated if a government establishes a
A) price ceiling above the market equilibrium price. B) price ceiling below the market equilibrium price. C) price floor above the market equilibrium price. D) price floor below the market equilibrium price.
Refer to Figure 11-18. Starting from point E, a movement along the isocost to point F
A) decreases output but not the total cost of production. B) decreases both the total cost of production and output. C) decreases the total cost of production but not output. D) increases the total cost of production and decreases output.