Which of the following would be considered an external shock?

Question

Quizplus · Accepted Answer

A war is an event that is external to the economy and not driven by both supply and demand forces within the economy itself. A decline in tax revenues during a recession can be considered an endogenous shock since the recession is internal to the economy, and its effects on tax revenues are a direct result of economic conditions. A recession and depression are also considered endogenous shocks as they arise from within the economy.

Which of the Following Would Be Considered an External Shock