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:

Contract

A binding pact between parties that has legal force and can be upheld in court.

Accept

To agree to receive or undertake something offered.

Offer

A proposal by one party to another to enter into a legal agreement, constituting one of the essential elements of a contract.

Counteroffer

A response to an offer in a negotiation, where the original offer is rejected and replaced with a new proposal.