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Define Real Shocks,define Nominal Shocks,and Give an Example of Each

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Essay

Define real shocks,define nominal shocks,and give an example of each.


Definitions:

Future Sacrifice

An expected loss of economic benefits due to commitments or obligations a business has entered into.

Liability

A financial obligation or debt owed by a business to another entity, typically due for repayment in the future.

Company

A legal entity formed by individuals, stockholders, or shareholders, with the purpose of operating for profit.

Economic Resource

An asset or input used in the production of goods and services with the capability to provide future economic benefit.

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