Which of the following is an example of positive supply shock?
A) Loss of financial assets due to financial crisis.
B) Global recessions resulting in the reduction of exports.
C) Improved consumer sentiments.
D) Lower price of energy.

Question

Quizplus · Accepted Answer

A positive supply shock, such as a decrease in the price of energy, can increase supply by reducing production costs, leading to potentially lower prices for consumers and increased economic output.

Which of the Following Is an Example of Positive Supply