A supply shock can be due to an increase in the price of oil.

Name: A supply shock can be due to an increase in the price of oil.
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Question

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A supply shock can occur when there is a sudden change in the availability or cost of production inputs such as oil. An increase in oil prices can lead to higher production costs for many industries, which can result in a decrease in the overall supply of goods and services, causing a supply shock.

A Supply Shock Can Be Due to an Increase in the Price