A price shock is typically caused by a change in
A)aggregate demand.
B)consumption.
C)tax policy.
D)government spending.
E)aggregate supply.

Question

Quizplus · Accepted Answer

A price shock is typically caused by a change in aggregate supply. This could be due to natural disasters, changes in technology or productivity, or changes in input prices. Price shocks can lead to inflation or deflation, and can have significant impacts on the economy, particularly on industries that rely heavily on the affected inputs.

A Price Shock Is Typically Caused by a Change in