An oil price _______ is a sudden increase or decrease in the nominal or real price...

An oil price _______ is a sudden increase or decrease in the nominal or real price of oil. This is an example of a ________ -side shock.

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Expert Solution

If there's a sudden increase or decrease in price, then supply will be altered immediately and this is called as supply side shock as given in the scenario. Oil price shock is nothing but the sudden increase or decrease in the price of the oil on the whole.

Therefore An oil price shock is a sudden increase or decrease in the nominal or real price of oil. This is an example of supply side shock is the answer

Rahul Sunny answered 2 years ago

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