Which of the following was a beneficial supply shock in the United States in the late 1990s?
A)higher energy prices
B)lower import prices
C)stable real prices of computers
D)None of the above.Supply shocks in the late 1990s were detrimental to the economy.

Question

Quizplus · Accepted Answer

Lower import prices were a beneficial supply shock in the United States in the late 1990s as they made goods cheaper for consumers and reduced production costs for businesses. This led to increased consumption and investment, and ultimately contributed to the economic growth of the time period. Higher energy prices and stable real prices of computers were not significant supply shocks during this time, and option D is incorrect as there were both beneficial and detrimental supply shocks in the late 1990s.

Which of the Following Was a Beneficial Supply Shock in the United