Rising Average Prices and Increased Unemployment Most Likely Come from

question 232

Multiple Choice

Rising average prices and increased unemployment most likely come from

• A) a negative demand shock.
• B) a negative supply shock.
• C) a positive demand shock.
• D) a positive supply shock.
• E) technological change.

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Definitions:

Parity Ratio

A measure comparing the value of one set of goods or services to another, often used in agriculture and international trade.

Agricultural Subsidies

Financial assistance programs provided by the government to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Gross Income

The total income received before any deductions or taxes are taken out.