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Essentials Of Investments
Found in: Page 396
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

Short Answer

The price of imported oil fell dramatically in late 2008. What sort of macroeconomic shock would this be considered?


The supply shock

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Step by Step Solution

Step by Step Solution Step 1: Definition of macroeconomic shock

Any unexpected event that has a large scale ramification on the economy is known as a shock or macroeconomic shock. Broadly there are two types of such shocks – Supply shock and demand shock.

Step 2: Explanation on type of macroeconomic shock

Since the prices fell largely owing to supply hence this would fall under the category of supply shock.

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