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.

Question

Quizplus · Accepted Answer

Rising average prices and increased unemployment are typically caused by a negative supply shock, which reduces the availability of goods and services and raises their cost. This is in contrast to a negative demand shock, which would lower prices and reduce employment.

Rising Average Prices and Increased Unemployment Most Likely Come from