Unexpected events that increase aggregate supply, sometimes only temporarily, are _____ shocks.
A) supply shocks.
B) demand shocks.
C) beneficial supply shocks.
D) adverse supply shocks.
E) unexpected shocks.

Question

Quizplus · Accepted Answer

Unexpected events that increase aggregate supply, sometimes only temporarily, are called beneficial supply shocks. For example, advancements in technology can lead to increased productivity and lower production costs, resulting in a boost in aggregate supply.

Unexpected Events That Increase Aggregate Supply, Sometimes Only Temporarily, Are