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
Economics
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The demand for a product is relatively more elastic:
a. ?When it has few substitutes ?b. In the long-run c. ?When the money spent on the product represents a small portion of a typical buyer's budget d. ?When the product is broadly defined
Economics
Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers?
A. The GDP Price Index B. The Consumer Price Index C. The Retail Trade survey D. The Wholesale Price Index
Economics