________ Shocks Are Unexpected Changes in the Demand for Goods

question 20

Multiple Choice

________ shocks are unexpected changes in the demand for goods and services While, _________ shocks are unexpected changes in the supply of goods and services.

• A) supply; demand.
• B) investment; savings.
• C) internal; external.
• D) demand; supply.

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Definitions:

Island Arc

A generally curved belt of volcanic islands above a subduction zone; also used as an adjective to refer to this setting.

Linear Island Chain

A series of islands aligned in a straight or nearly straight line, often formed by volcanic activity along a tectonic plate boundary.

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, that stretches across the ocean floor and is associated with seismic and volcanic activity.

Plate Boundary

Zone of tectonic activity, including earthquakes, along the boundary between two lithospheric plates that are moving relative to one another.