If a Hurricane Were to Wipe Out the Majority of the Eastern

question 161

Multiple Choice

If a hurricane were to wipe out the majority of the eastern seaboard in the United States:

• A) only the long-run aggregate supply curve would shift left.
• B) the long-run and short-run aggregate supply curves would both shift left.
• C) only the short-run aggregate supply curve would shift left.
• D) neither the short-run nor long-run aggregate supply curves would be affected.

---

Definitions:

Production Possibilities

A curve that represents the maximum combination of goods or services that can be produced in a given period with available resources.

Marginal Product

The extra output generated from increasing a particular input by one unit, while all other inputs remain unchanged.

Customers Served

The number of consumers who purchase or are provided with a product or service by a business within a specific period.

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the overall returns will eventually decrease after a certain point.