A large grain crop resulting from favorable weather conditions would shift which of the following curves?
A) only aggregate demand
B) aggregate demand and short-run aggregate supply
C) only short-run aggregate supply
D) only long-run aggregate supply

Question

Quizplus · Accepted Answer

A large grain crop resulting from favorable weather conditions would increase the supply of grains and thus shift the short-run aggregate supply curve to the right. It would not affect aggregate demand because it only affects the supply side, and it would not affect long-run aggregate supply because it does not have a permanent effect on the economy's potential output.

A Large Grain Crop Resulting from Favorable Weather Conditions Would