For the Following Changes in the Economy, Indicate Whether Short-Run

question 155

Essay

For the following changes in the economy, indicate whether short-run aggregate supply or long-run aggregate supply will be affected. Indicate the direction of the change.
a.an improvement in manufacturing technology
b.an increase in the world price of antimony (a chemical that the U.S. imports)
c.a bumper potato crop in the southern "potato belt"

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Definitions:

Viscous Lava Flows

Slow-moving lava flows that have a high viscosity, leading to thick, sticky forms of lava that do not travel far from the eruption site.

Cooled Lava

Solidified volcanic material formed when molten lava cools and hardens on the Earth's surface.

Basin-shaped Outline

Descriptive of a geographical depression or low area that resembles the shape of a basin, often collecting water and sediment.

Calderas

Calderas are large, usually circular depressions formed by the collapse of a volcanic area following the eruption and expulsion of a significant amount of magma.