Which of the following would not be considered a supply shock?

Question

Quizplus · Accepted Answer

Inflation is not a supply shock, but rather a general increase in the overall price level of goods and services in an economy. Supply shocks are events or changes that disrupt the production or supply of goods and services, such as a technological breakthrough or a labor strike. An extremely heavy frost could also be considered a supply shock as it could damage crops and decrease their supply.

Which of the Following Would Not Be Considered a Supply