Which of the following is the best example of a supply shock?
A) Planned improvements in energy production facilities.
B) Reductions in consumption spending triggered by a stock market crash.
C) The introduction of new innovations in production.
D) Increased government spending on education.

Question

Quizplus · Accepted Answer

A supply shock refers to an unexpected event that suddenly changes the supply of a product or commodity, leading to sudden changes in its price. The introduction of new innovations in production can lead to a positive supply shock by increasing productivity and supply.

Which of the Following Is the Best Example of a Supply