If Global Pollution Causes Climatic Changes That Permanently Harm Crop

question 85

Multiple Choice

If global pollution causes climatic changes that permanently harm crop production worldwide,aggregate supply and demand analysis would lead us to expect:

• A)an increase in the price level.
• B)a decrease in the price level.
• C)rightward shifts of the aggregate demand and aggregate supply curves.
• D)a leftward shift of the aggregate demand curve.
• E)an increase in the potential level of real GDP.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the products sold in a company, including both materials and labor costs.

Product Costs

The costs directly attributed to the production of a product, including materials, labor, and manufacturing overhead.

Period Costs

Expenses that are not directly attached to product production and are accounted for in the period they are incurred, such as sales and administrative expenses.

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as rent, salaries, and equipment depreciation.