Which of the following is (are) linked to (an) adverse supply shock(s)?
A) The Arab-Israeli war of 1973
B) the Iranian revolution of 1979
C) The wage renegotiations that followed the termination of U.S. wage and price controls in 1973
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

All of the given events are linked to adverse supply shocks. The Arab-Israeli war of 1973 resulted in oil shortages and price hikes in the global oil market. The Iranian revolution of 1979 led to significant disruptions in oil production and exports. The termination of U.S. wage and price controls in 1973 unleashed inflationary pressures, particularly on wages, which affected production costs and supply.

Which of the Following Is (Are) Linked to (An) Adverse