An economic policy maker would rank a _____ shock as the MOST preferred type.
A) positive demand
B) negative demand
C) positive supply
D) negative supply

Question

Quizplus · Accepted Answer

A positive supply shock leads to an increase in the availability of goods and services in the economy, which leads to lower prices and increased economic growth. This is typically preferred by policy makers as it leads to higher employment rates, increased output, and increased consumer spending.

An Economic Policy Maker Would Rank a _____ Shock as the MOST