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Assume that production in a country was affected because of a drought. Which of the following statements would be tru this scenario? (2 points) O The negative supply shock has increased production and decreased prices. O The positive demand shock has decreased production and increased prices. O The negative demand shock has increased production and decreased prices. rrect v/ @ The negative supply shock has decreased production and increased prices. O The negative supply shock has decreased production and decreased prices. ’13. (03.06 MC) Which of the following factors will cause a recession in an economy showing a long-run equilibrium? (2 points) O A negative supply shock that causes an increase in output and an increase in the price level () Anegative demand shock that causes an increase in output and an increase in the price level O A positive supply shock that causes a decrease in output and a decrease in the price level