If a Natural Disaster Were to Cause a Negative Long-Run

question 148

Multiple Choice

If a natural disaster were to cause a negative long-run supply shock to the economy,once the economy adjusts,the new equilibrium will be:

• A)at a higher price level and lower level of output.
• B)at a lower price level and higher level of output.
• C)at a higher price level and higher level of output.
• D)at a lower price level and lower level of output.

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Definitions:

Aptitude Test

A test that predicts future performance in a particular setting or on a specific task.

Standardized Test

A test administered and scored in a consistent manner, used to measure a participant's knowledge or skills in a specific area.

Reliable Test

A measure that consistently produces the same results under the same conditions, indicating the test's stability and consistency over time.

Bell Curve

A graphical depiction of a normal distribution, showing that data near the mean are more frequent in occurrence than data far from the mean.