In the mainstream view, the economic instability brought about by "oil shocks" works through changes in
A)aggregate demand.
B)wage and price inflexibility.
C)money supply.
D)aggregate supply.

Question

Quizplus · Accepted Answer

Oil shocks typically affect the economy by altering aggregate supply, as they directly impact production costs and the availability of goods and services.

In the Mainstream View, the Economic Instability Brought About by "Oil