An Unusual Series of Rainstorms Wash Out the Grain Crop

question 59

Multiple Choice

An unusual series of rainstorms wash out the grain crop in the Prairies,severely curtailing the availability of corn,wheat,and soybeans.What effect would this have on aggregate supply?

• A)It would shift the SRAS right, but not the LRAS.
• B)It would shift both the SRAS and the LRAS right.
• C)It would shift the SRAS left, but not the LRAS.
• D)It would shift both the SRAS and the LRAS left.

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Definitions:

Opportunity Cost

Loss of potential earnings from different choices when one is picked.

Employment Discrimination

It refers to unfair or unequal treatment of an individual or group based on characteristics such as race, gender, age, religion, or disability in the workplace.

Underemployment

A situation in which workers are employed less than they wish or are overqualified for their jobs, resulting in their skills being underutilized.

Production Possibilities Frontier

A curve depicting the maximum viable combination of two products that can be produced in an economy, assuming all resources are fully and efficiently utilized.