You Have Just Read That Australia Has Suffered a Drought,destroying

question 4

Multiple Choice

You have just read that Australia has suffered a drought,destroying its wheat crop for this year.The effect of this adverse supply shock on Australia would probably be

• A)an increase in prices and an increase in real interest rates.
• B)an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates.
• C)a decrease in prices and a decrease in real interest rates.
• D)a decrease in prices, a decrease in nominal interest rates, but an increase in real interest rates.

---

Definitions:

Authority

The legitimate or socially accepted use of power, often vested in roles or positions rather than in the personal qualities of the individuals holding them.

Social Stratification

The arrangement or classification of society into hierarchies or divisions based on factors like wealth, income, race, education, and power.

Canadian Society

The social structure, cultural norms, and collective behaviors of people living in Canada, shaped by historical, economic, and political factors.

Official Measure

A standardized method or tool adopted by authorities for assessing, regulating, or comparing data within a specific field.