A Major Hurricane Causes Production Problems in Gulf Coast Region

question 206

Multiple Choice

A major hurricane causes production problems in Gulf Coast region of the United States. This would cause

• A) the short-run aggregate supply curve to shift to the left, but there would be no effect on the long-run aggregate supply curve.
• B) the short-run aggregate supply curve to shift to the left, and the long-run aggregate supply curve would shift to the right.
• C) both the short-run and the long-run aggregate supply curves to shift to the right in equal amounts.
• D) both the short-run and the long-run aggregate supply curves to shift to the left, but the long-run aggregate supply curve would shift more than the short-run curve.

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