Aggregate supply shocks are:
A) the results of monetary policy actions.
B) the results of fiscal policy actions.
C) the results of structural policy actions.
D) inflation shocks or shocks to potential output.

Question

Quizplus · Accepted Answer

An aggregate supply shock is either an inflation shock or a shock to potential output. Adverse aggregate supply shocks of both types reduce output and increase inflation

Aggregate Supply Shocks Are