Supply Shocks

question 54

Multiple Choice

Supply shocks

• A)occur more frequently than demand shocks.
• B)usually result from fiscal and monetary policy changes.
• C)occur when sellers face unexpected changes in the availability and/or prices of key inputs.
• D)have been responsible for most of the recessions in the United States since World War II.

---

Definitions:

Central Government

The chief national authority governing a country, typically responsible for national policies and affairs.

Largest Purchasers

Entities or individuals that buy goods or services in large quantities, often having significant influence over market prices.

Payroll Companies

Businesses that specialize in managing the compensation of employees for other companies, including wages, taxes, and other deductions.

New Buy

A purchasing situation in which a buyer or company makes a significant purchase of a product or service for the first time, often involving considerable research and decision-making.