Multiple Choice
Suppose that a drought significantly reduces agricultural production one year. Which of the following would likely occur as a result of the bad weather?
A) The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the right.
B) The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the left.
C) The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the right.
D) The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the left.
Correct Answer:
Verified
Correct Answer:
Verified
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