In the short-run, a supply shock will lead to
A) movement of prices and output in the same direction.
B) movement of prices and output in opposite directions.
C) a sustained inflation.
D) a movement in prices, but not output.
B
Economics
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In general, agricultural price supports
A) raise food prices. B) have no impact on food prices. C) are designed to lower food prices. D) c and d
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Most cartels cease to be effective because:
A. of the incentive to cheat on the cartel agreement. B. the dominant firm buys out the other firms. C. of strict enforcement of antitrust legislation. D. consumers discover the cartel and buy from other firms instead.
Economics