Which Market Adjusts the Most Quickly in Response to Shocks

question 83

Multiple Choice

Which market adjusts the most quickly in response to shocks to the economy?

• A)the asset market
• B)the labour market
• C)the goods market
• D)The asset,labour,and goods markets adjust at about the same speed to eliminate a disequilibrium in the macroeconomy.

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Definitions:

Queuing

Waiting in line as a means of distributing goods and services: a nonprice rationing mechanism.

Excess Demand

A situation where the quantity demanded of a good or service exceeds its supply at the current price.

Ration

To distribute or allocate a resource, good, or service in limited amounts, often during shortages or to ensure equitable distribution.

Good

A material item or service that satisfies a human want or need.