1) Sri lanka is a pearl - shaped island nation in South .
Asia ; imagine the country is going through a Catastrophic Situation due to tsunami which
among the following will be valid in respect to the above mentioned situation.
a) The price level is increasing due to supply disruption
b.) The price level is falling due to supply disruption.
c) No change in the price level as supply disrupted.
d.) Demand will
have no influence on
influence on supply,
due to the tsunami
2) what will happen if a nation begins to print more currency and distribute it to people as the prices of everything are increasing day by day and they are not able to meet their needs .
a) country will run smoothly as people are getting enough money to spend .
b) country currency will get devaluation and the economy will collapse
c) will have no impact on the economy
d) economy will slightly move towards deflation
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