The Term "Shock

question 41

Multiple Choice

The term "shock"

• A)always refers to an unexpectedly bad event.
• B)always refers to an increase in inflation.
• C)does not tell us whether what has happened is unexpectedly bad or unexpectedly good.
• D)always refers to a decrease in real GDP and an increase in unemployment.

---

Definitions:

Rapidly Declining Occupations

Jobs or professions experiencing a significant decrease in demand, often due to technological advancements, economic shifts, or changes in consumer preferences.

Output Effect

The output effect is the change in total revenue resulting from selling additional units of a product, considering the impact on price due to supply and demand.

Elastic Demand

A condition where the quantity demanded of a good or service is highly responsive to changes in its price.

Output Effect

The impact on total revenue when a firm changes its output level, considering demand elasticity.