Short-term departures from equilibrium may be caused by
A) changes in spending decisions of households.
B) changes in fiscal policy.
C) changes in investment spending.
D) changes in foreign demand for U.S. products.
E) all of the above.

Question

Quizplus · Accepted Answer

All the options listed (changes in spending decisions of households, changes in fiscal policy, changes in investment spending, and changes in foreign demand for U.S. products) can cause short-term departures from economic equilibrium as they all influence aggregate demand or supply, leading to temporary imbalances in the economy.

Short-Term Departures from Equilibrium May Be Caused by