Falling 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) lower exchange rates.

Question

Quizplus · Accepted Answer

Falling average prices and increased unemployment are typically associated with a negative demand shock, or a decrease in demand for goods and services, leading to a decrease in production and employment.

Falling Average Prices and Increased Unemployment Most Likely Come from