Shocks to the economy occur when
A) stock prices rise by more than 10 percent per year.
B) government takes a more active role in the economy.
C) prices are ﬂexible.
D) actual economic events do not match what people expected.

Question

Quizplus · Accepted Answer

Shocks to the economy occur when actual economic events do not match what people expected. This creates uncertainty and can lead to a disruption in economic activity.

Shocks to the Economy Occur When