The run-up of oil prices in 2007 led to ________.
A) a negative supply shock
B) a negative demand shock
C) a positive supply shock
D) a positive negative shock

Question

Quizplus · Accepted Answer

The run-up of oil prices in 2007 led to a negative supply shock as it caused a decrease in the supply of oil, leading to an increase in its price. This negatively affected the economy as it led to an increase in production costs and a decrease in aggregate supply.

The Run-Up of Oil Prices in 2007 Led to ________