What Will an Adverse Supply Shock Cause Output and Prices

question 6

Multiple Choice

What will an adverse supply shock cause output and prices to do?

• A) It will cause output and prices to rise.
• B) It will cause output and prices to fall.
• C) It will cause output to rise and prices to fall.
• D) It will cause output to fall and prices to rise.

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Definitions:

Hospital Of Saint Mary Of Bethlehem

Originally a psychiatric hospital in London, known historically for its association with the treatment of mental illnesses.

Deplorable Conditions

Conditions that are very bad, miserable, or appalling in nature, often in reference to living situations or environments.

Bedlam

A scene of uproar and confusion; historically referring to the Bethlem Royal Hospital, a London psychiatric institution known for its chaotic conditions.

Operant Conditioning

A type of learning where behavior is controlled through consequences, including reinforcement which encourages behavior and punishment which discourages it.