Which of the following is considered a 'supply shock'?
A)the increasing investment in the economy causing the capital stock to rise
B)an unexpected large increase in the price of natural gas
C)a decline in wages
D)an improvement in technology

Question

Quizplus · Accepted Answer

An unexpected large increase in the price of natural gas can lead to a supply shock as it affects the inputs that businesses use in their production processes, leading to a decrease in supply of goods and services. The other choices do not involve a sudden shock to the economy's supply side.

Which of the Following Is Considered a 'Supply Shock