What Type of Shock to an Economy Tends to Be

question 8

Multiple Choice

What type of shock to an economy tends to be viewed most positively because it creates neither inflation nor unemployment?

• A) contractionary supply shock
• B) expansionary supply shock
• C) contractionary demand shock
• D) expansionary demand shock

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Definitions:

Net Sales Revenue

The amount of revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Nonsufficient Funds (NSF)

A situation where a bank account does not have enough money to cover a presented check or withdrawal request.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.