Which one of the following is not a U.S.supply shock?
A) Unions force an increase in national wage rates
B) 30% drop in oil supply from the Middle East
C) Extended droughts reduce U.S. food production 25%
D) Increases in Chinese purchases of U.S. exports

Question

Quizplus · Accepted Answer

Increases in Chinese purchases of U.S. exports is not a U.S. supply shock as it would lead to an increase in demand for U.S. exports and potentially boost economic growth. The other options (A, B, and C) all represent supply shocks as they would negatively impact the supply of goods or labor in the U.S. economy, potentially leading to higher prices and lower output.

Which One of the Following Is Not a U