Falling average prices and continued full employment 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) OPEC

Question

Quizplus · Accepted Answer

Falling average prices and continued full employment are most likely due to a positive supply shock, which means that there has been an increase in productivity or a decrease in production costs. This leads to a shift in the supply curve to the right, resulting in lower prices and increased output without causing inflation or unemployment.

Falling Average Prices and Continued Full Employment Most Likely Come