Suppose the economy is initially is long run equilibrium Then suppose – McqOptions

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1.	Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?
A.	Price rise; output falls
B.	Price fall; output rises
C.	Price rise; output rises
D.	Price fall; output falls
Answer» B. Price fall; output rises

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