The Reason a Shock to One Sector Can Spread to the Whole

question 33

Multiple Choice

The reason a shock to one sector can spread to the whole economy is that

• A) a decrease in production in one sector leads to an overall decrease in spending
• B) firms will need to help bail out other firms that are having troubles
• C) an increase in production in one sector will lead to an overall decrease in spending
• D) most shocks are not sector-specific but economy-wide
• E) workers laid off in the one sector will purchase more goods in another sector

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any prior learning.

Aquarium Light

A specialized form of lighting designed to simulate natural light and promote the health and behavior of aquatic plants and animals in aquariums.

Conditioned Stimulus

Within classical conditioning, an initially neutral stimulus becomes linked with an unconditioned stimulus and ultimately elicits a conditioned response.

Neutral Stimulus

In conditioning, a stimulus that initially elicits no specific response other than focusing attention, which can eventually elicit a conditioned response when paired with an unconditioned stimulus.