Which of the following is an asymmetric shock.
A) World oil prices rise substantially.
B) The unions in all the EU countries get together and strike over demands for better pensions.
C) Consumer tastes across Europe change.
D) Floods disrupting economic activity in one country.

Question

Quizplus · Accepted Answer

A flood disrupting economic activity in one country is an example of an asymmetric shock because it affects only one specific country or region and not the entire economy or global market. This can cause disruptions in supply chains, production, and overall economic activity within that country or region, leading to potential economic downturn. The other options (A, B, and C) have the potential to affect multiple countries simultaneously and therefore are not considered asymmetric shocks.

Which of the Following Is an Asymmetric Shock