Multiple Choice
Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?
A) The long-run aggregate supply curve would shift to the left.
B) The long-run aggregate supply curve would shift to the right.
C) The short-run aggregate supply curve would shift to the left.
D) The short-run aggregate supply curve would shift to the right.
Correct Answer:
Verified
Correct Answer:
Verified
Q156: When the housing bubble popped in 2007,
Q157: If the aggregate demand curve shifts to
Q158: During a recession, analysts at the CBO
Q159: All else equal, a shift in the
Q160: If the government lowers taxes by $400
Q161: Which of the following would likely cause
Q163: Stagflation refers to a situation in which
Q164: A supply curve that slopes upward reflects:<br>A)
Q165: Which of the following is a component
Q166: A decrease in consumer confidence will cause:<br>A)