An increase in the price of imported oil leads to a _____ shock.
A) positive supply
B) negative supply
C) positive demand
D) negative demand

Question

Quizplus · Accepted Answer

An increase in the price of imported oil leads to a negative supply shock because it increases the cost of production for firms that rely on oil, leading to a decrease in the supply of goods and services. This can lead to higher prices and lower economic growth.

An Increase in the Price of Imported Oil Leads to a _____