Essay
Which of the following represents a positive supply shock,a negative supply shock,a positive demand shock,or a negative demand shock?
a. The government unexpectedly doubles all personal income tax rates.
b. A newly discovered infectious disease shuts down all international ports indefinitely.
c. Major technological progress occurs in the market for green energy.
d. An earthquake wipes out 60% of the manufacturing capacity of an economy.
e. The government unexpectedly eliminates the inheritance tax and the capital gains tax on sales of stocks and bonds.
Correct Answer:

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a. negative demand shock
b. ne...View Answer
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Correct Answer:
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b. ne...
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