Multiple Choice
A temporary adverse supply shock, such as a drought _____
A) permanently shifts both the short-run and the long-run aggregate supply curves to the right.
B) temporarily shifts both the short-run and the long-run aggregate supply curves to the right.
C) permanently shifts both the short-run and the long-run aggregate supply curves to the left.
D) temporarily shifts both the short-run and the long-run aggregate supply curves to the left.
E) has no effect on either the long-run or the short-run aggregate supply curves.
Correct Answer:

Verified
Correct Answer:
Verified
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