Which of the following is a supply shock?
A) A decrease in money demand
B) An increase in the money supply
C) An increase in investment spending
D) A change in oil prices
E) A change in taxes.

Question

Quizplus · Accepted Answer

A change in oil prices is a classic example of a supply shock. It affects the cost of production for many firms and can lead to changes in prices and output levels across the economy. The other choices listed are not supply shocks, but rather demand shocks or changes in other economic factors.

Which of the Following Is a Supply Shock