Suppose a hurricane makes landfall in Louisiana and destroys much of this year's
soybean crop (which just happens to be the largest single crop export in the state).
What will happen using the aggregate demand-aggregate supply framework?
a. Short-run aggregate supply will shift leftward. Firms will hire more workers, and prices will increase.
b. Short-run aggregate supply will shift rightward. Firms will hire more workers, and prices will decrease.
c. Short-run aggregate supply will shift rightward. Firms will hire more workers, and prices will increase.
d. Short-run aggregate supply will shift leftward. Firms will hire less workers, and prices will increase.