General sources of shocks that can cause business cycles include the following, except
A) irregular occurrence of innovations and productivity changes.
B) monetary factors and ﬁnancial instability.
C) unemployment jumps and production drops.
D) political events, either domestic or global.

Question

Quizplus · Accepted Answer

C) is incorrect because unemployment jumps and production drops are consequences of business cycles rather than sources or causes. The other options (A, B, D) are recognized sources of shocks that can lead to business cycles.

General Sources of Shocks That Can Cause Business Cycles Include