Which of the following would qualify as an aggregate supply shock?

Question

Quizplus · Accepted Answer

An unexpected decrease in oil prices would qualify as an aggregate supply shock because it would impact the cost of production and the availability of inputs. This would shift the short-run aggregate supply curve to the right, increasing output and lowering prices.

B) A seasonally expected decrease in oil prices would not qualify as a supply shock because it is anticipated and built into expectations.

C) An unexpected surge in consumer confidence would not qualify as a supply shock because it is related to demand, not supply.

D) An anticipated tax cut would not qualify as a supply shock because it is anticipated and built into expectations.

Which of the Following Would Qualify as an Aggregate Supply