In the Short Run an Adverse Supply Shock Causes

question 90

Multiple Choice

In the short run an adverse supply shock causes:

• A) both prices and output to rise.
• B) prices to rise and output to fall.
• C) prices to fall and output to rise.
• D) both prices and output to fall.

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Definitions:

Home Heating

The process of increasing the temperature of an indoor space for comfort, typically achieved through systems like furnaces, boilers, or heat pumps.

Monopolists

Entities or individuals that have exclusive control over the supply of a particular good or service, potentially leading to distorted markets and higher prices.

Internalize

The process of absorbing or incorporating the costs or benefits of a transaction or activity, which were previously external to a market decision-maker, into their own decision-making process.

Nationalized

Refers to industries or assets that have been transferred from private to government ownership.