During the 14th century, the Black (Shudder) Death (Bubonic Plague) reduced the population of England by one third, in three years. Historians report that afterwards, the prices of goods rose, but wages (incomes) of the survivors rose even more, resulting in higher real incomes for the survivors. Also, rents on land fell, and some marginal lands fell into complete disuse. Incidentally, the medium of exchange at the time was mainly metal coin.

a. What effect did the plague have on total (not per capita) output and stock of money?

b. Explain why the prices of goods would be expected to rise.

e. Only humans caught the plague. Using the law of diminishing returns, explain why real incomes would increase.

d. Explain the observation about land rents.