In the EPA article, “Climate Impacts in the Midwest,” the City of Chicago reports that the Midwest’s participation in some areas increased by 20% due to climate change. “Projections of future precipitation indicate that heavy downpours are likely to occur primarily in winter and spring months while summers will become drier.” 

Considering that Midwest is a large agricultural base, what is the effect on output, price level, and employment in this area? Use the AD/AS diagram to analyze these changes.

Answer rating: 100% (QA)

The effects of climate change on agricultural production in the Midwest region as described in the EPA article can be analyzed using the Aggregate Dem... View the full answer