A change in the price of a key commodity such as oil, usually because of a shortage, that causes a shift in the inflation adjustment line is known as a
A)commodity shock.
B)price shock.
C)price revamping.
D)disinflation.
E)None of these

Question

Quizplus · Accepted Answer

A price shock refers to a sudden and significant change in the price of a key commodity, like oil, which can lead to shifts in inflation expectations and adjustments.

A Change in the Price of a Key Commodity Such