Owing to the global rise of fertilizer prices in 2022 (in turn caused by the Russian invasion of Ukraine), the country experienced a shortage in some agricultural commodities. Using the AS-AD model, which of the following is an anticipated effect of this phenomenon? O a. Aggregate demand will rise in the short run. b. Aggregate demand will be higher than initial level in the long run. Prices will quickly rise in the short run. C. O d. Prices will fall even below the pre-supply shock level in the long run.

Owing to the global rise of fertilizer prices in 2022 (in turn caused by the Russian invasion of Ukraine), the country experienced a shortage in some agricultural commodities. Using the AS-AD model, which of the following is an anticipated effect of this phenomenon? O a. Aggregate demand will rise in the short run. b. Aggregate demand will be higher than initial level in the long run. Prices will quickly rise in the short run. C. O d. Prices will fall even below the pre-supply shock level in the long run.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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