When Demand Shocks Lead to Recessions, It Is Mainly Due

question 27

Multiple Choice

When demand shocks lead to recessions, it is mainly due to

• A) price inflexibility.
• B) the inability of government policy to affect demand.
• C) unexpected changes in the supply of goods and services.
• D) government regulations that prevent firms from adjusting output in response to the shocks.

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Definitions:

Inflammation

A biological response to injury or infection, resulting in redness, warmth, swelling, and pain in the affected area.

Tenderness

A sensation of pain or discomfort when an area of the body is touched or pressed, often indicating inflammation or an underlying condition.

Discomfort

A mild physical or emotional state of feeling unwell or uneasy.

Proctoscope

A medical instrument used to examine the inside of the rectum.