When Demand Shocks Lead to Recessions,it Is Mainly Due To

question 79

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:

Beneficiaries

Individuals or entities that receive benefits or advantages from something, especially legal benefits or financial gains.

Exclusion

The act of denying someone access to a service, group, or resource, often leading to social or economic disadvantages.

National Defense

Refers to government and military actions and strategies aimed at protecting a country from threats and maintaining its sovereignty.

Small Government

A political philosophy that advocates for minimal government intervention in the economic and personal affairs of citizens, emphasizing lower taxes and reduced government spending.