Demand Shocks

question 126

Multiple Choice

Demand shocks

• A) refer to unexpected changes in the desires of households and businesses to buy goods and services.
• B) refer to unexpected changes in the ability of firms to produce and sell goods and services.
• C) always have a negative effect on the economy.
• D) cause fewer short-run fluctuations than supply shocks.

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Definitions:

Antianxiety Drugs

Antianxiety drugs are medications designed to reduce symptoms of anxiety and panic disorders, helping to calm an individual's mental state.

Xanax

A prescription medication known generically as alprazolam, used primarily to treat anxiety disorders and panic attacks by calming the nervous system.

Ativan

A prescription medication known generically as lorazepam, used to treat anxiety disorders, insomnia, and certain types of seizures.

Antipsychotic Drugs

Medications used to treat symptoms of psychosis, including delusions and hallucinations, primarily in mental health conditions.