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
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A. are variable in the short run. B. measure the opportunity costs of the resources supplied by the firm's owners. C. measure the payments made to the firm's factors of production. D. are fixed in the short run.
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Since wages fell by more than prices, Civil War laborers were better off
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