A Supply Shock

question 141

Multiple Choice

A supply shock

• A) is usually caused by a change in the money supply
• B) is any event that causes the aggregate supply curve to shift
• C) is any event caused by a change in the price level
• D) is usually good news for the economy
• E) always leads to an increase in the interest rate

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Definitions:

Ugandan Consumers

Individuals and households in Uganda that buy goods and services for personal use.

Coffee

A brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.

Domestic Price

The price of goods or services within a country, unaffected by international market prices or exchange rates.

World Price

The global market price of a commodity, determined by supply and demand in the international market.