What Is the Effect of a Temporary Decrease in the Availability

question 216

Multiple Choice

What is the effect of a temporary decrease in the availability of raw materials?

• A) Aggregate supply shifts right.
• B) Output falls in the short run.
• C) Prices fall in the short run.
• D) Long-run aggregate supply shifts to the left.

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Definitions:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Frugality

The quality of being economical with resources or expenditure; practicing restraint in the use of materials and funds.

Cognitive Dissonance

A psychological state of discomfort arising from holding two or more conflicting beliefs, values, or attitudes, leading to behavior change or attitude adjustment.

Consistency

is the tendency to maintain a uniform behavior, attitude, or belief over time.