A large decrease in oil prices is an example of:
A)a positive inflation shock.
B)a negative inflation shock.
C)inflation inertia.
D)excessive aggregate spending.

Name: A large decrease in oil prices is an example of: A)a positive inflation shock. B)a negative inflation shock. C)inflation inertia. D)excessive aggregate spending.
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Question

Quizplus · Accepted Answer

A large decrease in oil prices can lead to lower overall price levels, which is considered a positive inflation shock as it reduces inflationary pressures.

A Large Decrease in Oil Prices Is an Example Of