Which market adjusts the quickest in response to shocks to the economy?
A)The asset market
B)The labor market
C)The goods market
D)The asset, labor, and goods markets adjust at about the same speed to eliminate a disequilibrium in the macroeconomy.

Question

Quizplus · Accepted Answer

The asset market adjusts the quickest in response to shocks to the economy because it is highly liquid and information is rapidly incorporated into asset prices, allowing for quick adjustments to new economic conditions.

Which Market Adjusts the Quickest in Response to Shocks to the Economy