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

Question

Quizplus · Accepted Answer

A negative supply shock, such as an increase in oil prices, can lead to both inflation and decreased economic growth. It can also lead to reduced employment opportunities and income for workers in the affected industries. As a result, economic policy makers would prefer to avoid negative supply shocks if possible.

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