An Abnormally Large Grain Crop Due to Highly Favorable Weather

question 150

Multiple Choice

An abnormally large grain crop due to highly favorable weather conditions in the Midwest is an example of

• A) a technological improvement that will increase long-run aggregate supply.
• B) a supply shock that will increase short-run aggregate supply.
• C) an unexpected development that will reduce the natural rate of unemployment.
• D) an unexpected development that will lead to excess supply and widespread unemployment.

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Definitions:

Productive Capabilities

This term describes the maximum output or efficiency level that an organization or economy can achieve with the current resources and technology.