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:

Facial Reconstructions

The process of recreating the facial appearance of an individual, often used in forensic science or archaeology, from their skeletal remains.

Fossil Evidence

Refers to physical remnants or imprints of organisms from past geological ages, preserved in rocks and sediments, which provide insights into historical biological life and evolutionary processes.

Bipedalism

A special form of locomotion on two feet found in humans and their ancestors.