Economists Believe That Most Short-Run Fluctuations Are the Result of Supply

question 34

True/False

Economists believe that most short-run fluctuations are the result of supply shocks.

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Definitions:

Cyclical Stock

A stock whose price is affected by macroeconomic changes in the overall economy, often correlated with economic cycles of expansion and recession.

Expected Return

The anticipated return on an investment, calculated as a weighted-average of all possible returns, based on their probabilities.

Expected Return

The anticipated percentage return on an investment, accounting for all possible outcomes and their probabilities.

Market Risk Premium

The additional financial gain an investor looks to achieve by preferring a risk-laden market portfolio over risk-free investment options.