Which of the following is considered to be a supply shock?

Question

Quizplus · Accepted Answer

A supply shock is an unexpected event that disrupts the supply of goods or services in a market. An unexpected large increase in the price of natural gas would increase the production cost of many goods and services, leading to a decrease in supply and potentially higher prices for consumers.

The other choices do not represent a supply shock. Choice A represents an increase in the capital stock, which could lead to increased production and higher economic growth but is not a sudden unexpected event. Choice C represents a decline in wages, which would affect the cost of labor but is not necessarily unexpected or sudden. Choice D represents an improvement in technology, which can increase efficiency and productivity in the long run but is not a sudden event that disrupts the supply of goods or services.

Which of the Following Is Considered to Be a Supply