Economic Impacts of Supply Shocks

Economic Impacts of Supply Shocks

Assessment

Interactive Video

Business

11th - 12th Grade

Hard

Created by

Patricia Brown

FREE Resource

The video tutorial by Domenico from Ezinomics explores different inflation models, focusing on cost-push inflation. It uses the 1973 oil crisis as a classic example of a supply shock, explaining how the reduction in oil supply led to a significant price increase, impacting the global economy. The tutorial also discusses the role of petroleum in modern economies and examines the COVID-19 pandemic as a recent supply shock. Through graphical analysis, it illustrates the effects of supply shocks on GDP, inflation, and unemployment, highlighting the recessionary gap and inflation. The video concludes by comparing the Keynesian and Monetarist models, emphasizing their relevance in different economic contexts.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What type of inflation is illustrated by the 1973 oil crisis?

Deflation

Hyperinflation

Cost-push inflation

Demand-pull inflation

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the 1973 oil crisis affect the price of oil?

It doubled

It remained stable

It decreased by 50%

It increased by 300%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant impact of the 1973 oil crisis on global economies?

Damage to both developed and developing economies

Stabilization of oil prices

Increased employment

Economic growth

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What recent event is considered a supply shock similar to the 1973 oil crisis?

The 2008 financial crisis

The COVID-19 pandemic

The 2000 dot-com bubble

The 1997 Asian financial crisis

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the COVID-19 pandemic disrupt global supply chains?

By increasing oil production

By causing factory shutdowns

By reducing consumer demand

By stabilizing global markets

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to real GDP during a supply shock like the 1973 oil crisis?

It fluctuates unpredictably

It decreases

It remains unchanged

It increases significantly

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the effect on unemployment during a supply shock?

Unemployment is unaffected

Unemployment decreases

Unemployment remains stable

Unemployment increases

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