A favorable supply shock occurs when: A) an oil cartel breaks up and oil prices fall....

 

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A favorable supply shock occurs when: A) an oil cartel breaks up and oil prices fall. B) unions push wages up. C) environmental protection laws raise costs of production. D) the Fed increases the money supply. A favorable supply shock occurs when: A) an oil cartel breaks up and oil prices fall. B) unions push wages up. C) environmental protection laws raise costs of production. D) the Fed increases the money supply.

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A supply shock is caused due a significant shift in producers capacity or willingness to d... View the full answer