Assume that production in a country was affected because of a drought. Which of the following statements

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Question:

Assume that production in a country was affected because of a drought. Which of the following statements would be true in this scenario?

The negative supply shock has increased production and decreased prices. The positive demand shock has decreased production and increased prices. The negative demand shock has increased production and decreased prices. The negative supply shock has decreased production and increased prices. The negative supply shock has decreased production and decreased prices.