An increase in the money supply is an example of a real shock.

Name: An increase in the money supply is an example of a real shock.
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An increase in the money supply is an example of a monetary shock, not a real shock. Real shocks refer to unexpected events that impact the availability or cost of factors of production such as natural resources, labor, or technology. Monetary shocks impact the level of money supply, interest rates, or inflation.

An Increase in the Money Supply Is an Example of a Real