Which of the following represents a positive supply shock,a negative supply shock,a positive demand shock,or a negative demand shock?
a. The government unexpectedly doubles all personal income tax rates.
b. A newly discovered infectious disease shuts down all international ports indefinitely.
c. Major technological progress occurs in the market for green energy.
d. An earthquake wipes out 60% of the manufacturing capacity of an economy.
e. The government unexpectedly eliminates the inheritance tax and the capital gains tax on sales of stocks and bonds.

Question

Quizplus · Accepted Answer

The Answer of Which of the following represents a positive supply shock,a negative supply shock,a positive demand shock,or a negative demand shock?
a. The government unexpectedly doubles all personal income tax rates.
b. A newly discovered infectious disease shuts down all international ports indefinitely.
c. Major technological progress occurs in the market for green energy.
d. An earthquake wipes out 60% of the manufacturing capacity of an economy.
e. The government unexpectedly eliminates the inheritance tax and the capital gains tax on sales of stocks and bonds.

Which of the Following Represents a Positive Supply Shock,a Negative