Suppose the Economy Is in Equilibrium When There Is a Change

question 139

Multiple Choice

Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe

• A) a decrease in aggregate supply and an increase in aggregate demand.
• B) a decrease in both real output and the natural rate of unemployment.
• C) a decrease in real output and an increase in the natural rate of unemployment.
• D) a decrease in real output and an increase in the price level.

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Definitions:

Retrograde Amnesia

A loss of memory for events that occurred before the onset of amnesia, often due to brain injury or disease.

Retrograde Amnesia

A condition in which a person loses memories of events that occurred before a traumatic event.

Anterograde Amnesia

A condition in which the ability to form new memories following the onset of amnesia is impaired or lost, while long-term memories from before the amnesia remain accessible.

Head Injury

Physical trauma to the head leading to brain damage, which can affect a person's cognitive functions, physical abilities, or emotional behavior.