Question

What is an example of a positive external shock to aggregate supply?

A. Good weather leads to an unusually productive harvest for corn farmers.

B. A popular new diet encourages consumers to buy more corn flakes.

C. Demand for new suburban houses increases the value of farmland.

D. China announces that it plans to import more corn from the United States.

Answer 1

What is an example of a positive external shock to aggregate supply?

A. Good weather leads to an unusually productive harvest for corn farmers.

Answer 2

"Good weather leads to an unusually productive harvest for corn farmers" is the one among the following choices given in the question that is an example of a positive external shock to aggregate supply. The correct option among all the options that are given in the question is the first option or option "A".