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

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 at a:

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