An Abnormally Large Grain Crop Due to Highly Favorable Weather

question 41

Multiple Choice

An abnormally large grain crop due to highly favorable weather conditions in the Midwest is an example of a(n)

• A)technological improvement that will increase long-run aggregate supply.
• B)supply shock that will increase short-run aggregate supply.
• C)unexpected development that will reduce the natural rate of unemployment.
• D)unexpected development that will lead to excess supply and widespread unemployment.

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Definitions:

Oil Reserve

Stocks of crude oil or refined petroleum products held underground or in storage facilities controlled by countries or corporations for future use.

Profit

The financial gain realized when revenue from business activities exceeds the costs and expenses involved in operating.

Market Rate

The prevailing price or cost of goods, services, wages, or interest rates in the open market.

Natural Gas

A fossil fuel composed mainly of methane, used as an energy source for heating, electricity, and vehicle fuel.