If a Natural Disaster Causes a Negative Long-Run Supply Shock

question 134

Multiple Choice

If a natural disaster causes a negative long-run supply shock to the economy, the new equilibrium will occur at a _______ price level and _______ level of output once the economy adjusts.

• A) higher; lower
• B) lower; higher
• C) higher; higher
• D) lower; lower

---

Definitions:

Country of Origin

The country in which a person was born or where a product was manufactured or created.

Conditional Distribution

the probability distribution of a subset of variables given the values of other variables.

Blood Pressure

the force exerted by circulating blood on the walls of blood vessels.

Age Group

A range of ages into which individuals are grouped for statistical analysis based on similarities in their age.