A Temporary Rise in the Price of Agricultural Crops Due

question 232

Multiple Choice

A temporary rise in the price of agricultural crops due to a drought is likely to cause a(n) :

• A) increase in the long-run aggregate supply.
• B) decrease in the long-run aggregate supply.
• C) increase in the short-run aggregate supply.
• D) decrease in the short-run aggregate supply.

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Definitions:

Extinguishing

The act of putting an end to something, such as extinguishing a debt, a legal obligation, or a fire.

Dissolution

Dissolution is the process of formally ending the existence of a legal entity such as a company or partnership.

Winding Up

The process of dissolving a company by selling its assets, paying off creditors, and distributing the remaining assets to shareholders.

Liquidation

The process of closing a business and distributing its assets to claimants.