An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
You might also like to view...
Given its size, the United States does not have to worry about limitations on resources.
Answer the following statement true (T) or false (F)
A society consists of three individuals: Larry, Margaret, and Nina. In terms of income and utility, Larry is currently best-off, Margaret ranks in the middle, and Nina is worst-off. Which of the following statements is correct?
a. Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility. b. Liberalism suggests that government policies should strive to maximize the sum of Larry's utility and Nina's utility. c. Libertarianism suggests that government policies should strive to make Nina better off at the cost of Larry and Margaret. d. Utilitarianism suggests that the government policies should strive to make Nina better off than Margaret.
Describe a grim trigger strategy.
What will be an ideal response?
When a firm engages in price discrimination, it sets marginal revenue equal to marginal cost for each separate set of consumers.
Answer the following statement true (T) or false (F)