Suppose a Prolonged War in a Country Destroys 30% of the Capital

question 65

Multiple Choice

Suppose a prolonged war in a country destroys 30% of the capital stock.In the long run,the price level will ________ as ________.

• A) increase; short-run aggregate supply decreases
• B) decrease; both long-run and short-run aggregate supply decrease
• C) decrease; long-run aggregate supply decreases
• D) remain unchanged; long-run aggregate supply decreases
• E) increase; both long-run and short-run aggregate supply decrease

---

Definitions:

Anterior Convex

A description of a curvature or surface that bulges outward toward the front.

Logrolling Technique

A method used in medical and rescue situations to move a patient without flexing the spinal column, by rolling them as a unified whole.

Pillows

Cushioned supports used for comfort, typically while sleeping or sitting.

Torso

The central part of the human body to which the neck and limbs are attached.