The OPEC oil price shocks of the 1970s were example of
A) negative demand shocks.
B) negative supply shocks.
C) positive demand shocks.
D) positive supply shocks.
E) what happens from listening to too much ABBA.

Question

Quizplus · Accepted Answer

The OPEC oil price shocks of the 1970s were a negative supply shock because OPEC, a cartel of oil-producing countries, reduced the supply of oil to other countries, causing the price of oil to rise sharply. This reduced the supply of goods and services available to the economy, which led to inflationary pressures and slower economic growth.

The OPEC Oil Price Shocks of the 1970s Were Example