If there is pollution in producing a product, then the market equilibrium price is too high and equilibrium quantity is too low

Changes in expenditures and taxes that occur through automatic stabilizers

A) shift the aggregate demand curve to the right in the event of an economic expansion. B) shift the aggregate demand curve to the left in the event of an economic contraction. C) do not shift the aggregate demand curve. D) cause a movement up along the aggregate demand curve the event of an economic expansion and a movement down along the aggregate demand curve the event of an economic contraction.

A year-long drought that destroys most of the summer's crops would be considered a:

A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.