____ are unexpected temporary events that can either increase or decrease the short-run aggregate supply.
A) Profit effects
B) Volatilities
C) Supply shocks
D) Misperception effects

Question

Quizplus · Accepted Answer

Supply shocks are unexpected temporary events that can either increase or decrease the short-run aggregate supply. These shocks can be caused by a variety of factors such as natural disasters, war, sudden changes in technology, or unexpected changes in commodity prices. The impact of supply shocks on the economy can be significant, leading to fluctuations in output, employment, and prices.

____ Are Unexpected Temporary Events That Can Either Increase or Decrease