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:

Vitamin C Deficiency

A condition caused by insufficient vitamin C intake, leading to symptoms such as fatigue, gum inflammation, and skin issues.

Spongy Gingiva

A condition where the gums are soft, swollen, and may bleed easily, often a sign of gum disease or infection.

Cheilosis

A condition characterized by the cracking and inflammation of the lips, often due to vitamin B deficiency or fungal infection.

Gag Reflex

A reflex contraction of the back of the throat, evoked by touching the soft palate, designed to prevent choking and aspiration of foreign objects.