Question

Consider the following imaginary events in 2010:
1. The monsoon is normal and there is a bumper harvest compared to the poor harvest of the 2009
2. There is no monsoon and rainfall is even lesser to a great extent than 2009 and suddenly the country comes under the grip of the severe drought
3. A new technology comes which all of a sudden increases the farm output in the country by a great extent
Which of the above three events will led to a supply shock ?
(A)1 only
(B)1 & 2 only
(C)2 & 3 only
(D)1 & 3 only
(E)all 1,2,3

Answer 1

correct option is (D) 1 & 3
as in second option there is draught so there will be no production hence no supply of shock.