In 2005 hurricane Katrina devastated large portions of the Gulf Coast economy. Many refineries went offline disrupting oil refining and distribution. What do you think was a likely result?
A) the restricted supply constituted a cost push shock that would have shifted the long run AS curve to the right
B) the restricted supply constituted a cost push shock that would have shifted the short run AS curve to the left
C) the restricted supply constituted a cost push shock that would have meant an upward movement along the Phillips curve
D) all of the above
E) none of the above
B
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The equity capital of a privately owned firm includes:
a. the owner's own dollars put into the firm. b. the cost of raw materials. c. the cost of labor resource used in production. d. economic rent only. e. the value added at each stage of production.
Economic mobility in the United States is so great that fewer than
a. 3 percent of families are poor for 8 or more years. b. 5 percent of families are poor for 8 or more years. c. 8 percent of families are poor for 8 or more years. d. 10 percent of families are poor for 8 or more years.