Multiple Choice
If a new insect invasion devastates crops all across the United States,which of the following would most likely occur in the short run?
A) Unit costs would decrease and the economy would move upward along the aggregate supply curve.
B) Unit costs would increase and the aggregate supply curve would shift downward.
C) Unit costs would increase and there would be movement along the aggregate supply curve.
D) Unit costs would decrease and the aggregate supply curve would shift upward.
E) Unit costs would increase and the aggregate supply curve would shift upward.
Correct Answer:

Verified
Correct Answer:
Verified
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