Suppose a Prolonged War in a Country Destroys 30% of the Capital

question 65

Multiple Choice

Suppose a prolonged war in a country destroys 30% of the capital stock.In the long run,the price level will ________ as ________.

• A) increase; short-run aggregate supply decreases
• B) decrease; both long-run and short-run aggregate supply decrease
• C) decrease; long-run aggregate supply decreases
• D) remain unchanged; long-run aggregate supply decreases
• E) increase; both long-run and short-run aggregate supply decrease

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Definitions:

Ethical Issue

An issue or circumstance necessitating the choice between options by an individual or institution, which must be judged as ethical (right) or unethical (wrong).

Stakeholders

Individuals or groups affected by or having an interest in the operations and decisions of a business or project.

USMCA

The United States-Mexico-Canada Agreement, a free trade deal replacing NAFTA to facilitate fair trade among these North American countries.

NAFTA

The North American Free Trade Agreement (NAFTA) was a treaty entered into by the United States, Canada, and Mexico; it was designed to eliminate most tariffs on trade between these nations.