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

Economics

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Roughly what percentage of money income was earned by the highest 5% of income earners in the U.S. in 2010?

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When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 3/4, a $10 billion increase in investment will cause the equilibrium income to rise by

a. $5 billion. b. $10 billion. c. $20 billion. d. $40 billion.

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Monopoly profits lead to technological process by:

A. carefully investing deadweight loss. B. encouraging the development of innovations by firms attempting to break a monopoly. C. firms lobbying Congress for protection of their monopolies. D. increasing the amount of human capital in the economy.

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The "paired observation" of (12, 6) means

A. x = 12, y = 6. B. x = 6, y = 12. C. the origin is at 12 and 6. D. x = any multiple of 12, y = any multiple of 6.

Economics