If you see a newspaper headline that says "Oil prices rise sharply," this is an example of _____ shock.
A)a spending
B)an interest rate
C)a financial
D)a supply

Question

Quizplus · Accepted Answer

A rise in oil prices represents a supply shock. This means that there has been a sudden reduction in the supply of a key input (oil) used in production which leads to an increase in the price of the input, which then leads to changes in the price and output levels of products relying on that input.

If You See a Newspaper Headline That Says "Oil Prices