Economists believe that most short-run fluctuations
A)are the result of demand shocks.
B)are the result of supply shocks.
C)will not last long because prices will adjust to equalize the quantities demanded and supplied of goods and services.
D)will always have a negative effect on real GDP, inflation, and unemployment.

Question

Quizplus · Accepted Answer

In the short run, fluctuations in the economy are often attributed to demand shocks, which are sudden changes in the demand for goods and services. These can lead to temporary imbalances in the economy, affecting output and employment levels.

Economists Believe That Most Short-Run Fluctuations