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If a Natural Disaster Were to Cause a Negative Long-Run

Question 148

Multiple Choice

If a natural disaster were to cause a negative long-run supply shock to the economy,once the economy adjusts,the new equilibrium will be:


A) at a higher price level and lower level of output.
B) at a lower price level and higher level of output.
C) at a higher price level and higher level of output.
D) at a lower price level and lower level of output.

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