An Increase in the Prices of Natural Resources Will Lead

question 57

True/False

An increase in the prices of natural resources will lead to a decrease in short-run aggregate supply.

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Definitions:

Primary Sector

The part of the economy involved with the extraction and production of raw materials, such as farming, mining, and fishing.

Economy

A system of production, distribution, and consumption of goods and services within a certain geographical area or country.

Agriculture

The science, art, and business of cultivating soil, producing crops, and raising livestock.

Societal Institution

An organized and established social system that meets basic societal needs, such as family, education, religion, and politics.