Functions that show how variables adjust to shocks over time are known as
A)adjustment functions
B)system dynamic functions
C)impulse response functions
D)expansion paths

Question

Quizplus · Accepted Answer

The correct term for describing how variables adjust to shocks over time is impulse response functions. Option A is too general and does not capture the specific term used in economics. Option B is not an accurate or commonly used term in this context. Option D refers to a different concept in economics and does not capture the specific term used for this question.

Functions That Show How Variables Adjust to Shocks Over Time