What type of shock to an economy tends to be viewed most positively because it creates neither inflation nor unemployment?
A) contractionary supply shock
B) expansionary supply shock
C) contractionary demand shock
D) expansionary demand shock

Question

Quizplus · Accepted Answer

An expansionary supply shock is viewed most positively because it increases the supply of goods and services in an economy without leading to inflation or unemployment. This type of shock can lead to lower prices for consumers and higher output without negatively impacting employment levels.

What Type of Shock to an Economy Tends to Be