A Temporary Adverse Supply Shock, Such as a Drought _____

question 67

Multiple Choice

A temporary adverse supply shock, such as a drought _____

• A) lowers the price level and increases output.
• B) lowers the price level and decreases output.
• C) raises the price level and increases output.
• D) raises the price level and decreases output.
• E) has no effect on either the long-run or the short-run aggregate supply curves.

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