Which of the following would not be considered a supply shock?
A) a change in the price of imported oil
B) frost damage to the orange crop
C) a change in the level of education of the average worker
D) an increase in the level of government spending

Question

Quizplus · Accepted Answer

An increase in government spending is a demand shock, not a supply shock. Supply shocks are unexpected events that affect the production and availability of goods and services, such as changes in the price of inputs like oil or natural disasters that damage crops. A change in the level of education of the average worker could potentially lead to a supply shock if it affects productivity and output.

Which of the Following Would Not Be Considered a Supply