Assume That the Salinity Problem in Australia Becomes Worse and a Large

question 63

Multiple Choice

Assume that the salinity problem in Australia becomes worse and a large proportion of land can no longer be used for agricultural purposes. The likely effect on the supply of wheat can be illustrated by:

• A) a shift rightwards of the supply curve of wheat
• B) a movement down along the supply curve of wheat
• C) a shift leftwards of the supply curve of wheat
• D) a movement up along the supply curve of wheat

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Definitions:

Double-Digit Inflation

An inflation rate that reaches or exceeds 10%, indicating rapid increases in prices.

Double-Digit Unemployment

A situation where the unemployment rate reaches or exceeds 10 percent, indicating a high level of joblessness.

Stagflation

A condition of slow economic growth and relatively high unemployment—a period of stagflation—accompanied by rising prices (inflation).

Misery Index

An economic indicator created by summing the unemployment rate and inflation rate, aiming to provide a snapshot of the average citizen's economic well-being.