Asked by Alondra Aguirre on Jun 28, 2024
Verified
If global pollution causes climatic changes that permanently harm crop production worldwide,aggregate supply and demand analysis would lead us to expect:
A) an increase in the price level.
B) a decrease in the price level.
C) rightward shifts of the aggregate demand and aggregate supply curves.
D) a leftward shift of the aggregate demand curve.
E) an increase in the potential level of real GDP.
Global Pollution
Environmental damage that crosses international borders, affecting air, water, and land on a worldwide scale.
Aggregate Supply
The total supply of goods and services that firms in an economy are willing to sell at a given overall price level and in a given time period.
Aggregate Demand
The combined appetite for every good and service across an economy, pegged at a general price level during an established time period.
- Evaluate the consequence of supply disruptions on the aggregate supply curve.
- Identify factors leading to changes in aggregate supply and demand, including policy decisions and environmental changes.
Verified Answer
Learning Objectives
- Evaluate the consequence of supply disruptions on the aggregate supply curve.
- Identify factors leading to changes in aggregate supply and demand, including policy decisions and environmental changes.
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