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31. In macroeconomic terms an increase in the price of imported oil or a decrease in the availability of oil is an example of a _________.

A. demand shock
B. supply shock
C. monetary shock
D. refinery shock

1 Answer

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Final answer:

An increase in the price of imported oil or a decrease in its availability is an example of a supply shock in macroeconomics, causing a leftward shift in the supply curve and impacting the equilibrium price and quantity of oil.

Step-by-step explanation:

In macroeconomic terms, an increase in the price of imported oil or a decrease in the availability of oil is an example of a supply shock. A supply shock refers to an unexpected and significant change in the supply of a key input, in this case, oil. A decrease in the availability of oil would result in a leftward shift in the supply curve, causing an increase in the equilibrium price and a decrease in the equilibrium quantity of oil.

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