Which of the following is considered a negative supply shock?
A)increasing immigration in the economy causes the labour supply to rise
B)an improvement in technology
C)an increase in unemployment
D)an unexpected decrease in the refining capacity for oil
E)an increase in the capital stock

Question

Quizplus · Accepted Answer

An unexpected decrease in the refining capacity for oil results in a decrease in the supply of oil, which increases its price, causing a negative supply shock. The other options are not negative supply shocks.

Which of the Following Is Considered a Negative Supply Shock