If a Hurricane Were to Wipe Out the Majority of the Eastern

question 161

Multiple Choice

If a hurricane were to wipe out the majority of the eastern seaboard in the United States:

• A) only the long-run aggregate supply curve would shift left.
• B) the long-run and short-run aggregate supply curves would both shift left.
• C) only the short-run aggregate supply curve would shift left.
• D) neither the short-run nor long-run aggregate supply curves would be affected.

Recognize the possibility of abnormal consumer responses to income and price changes, including Giffen goods and inferior goods.

Apply consumer choice theory to analyze real-world economic situations and experiments.

Understand the concept of consumer optimum and how it is determined by the intersection of budget constraints and indifference curves.

Calculate the optimum consumption bundle given a consumer's income and prices of goods.

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