The economic forces that amplify shocks by spreading them across time and sectors of the economy are called:

Question

Quizplus · Accepted Answer

The term "transmission mechanisms" refers to the economic forces that transmit or spread shocks across different sectors and periods of the economy. These mechanisms can include changes in interest rates, exchange rates, and credit availability, among others. Intertemporal substitutions refer to the substitution of consumption or production over time, while irreversible investments refer to investments that cannot easily be reversed or undone. Aggregate demand conveyances is not a commonly used term in economics.

The Economic Forces That Amplify Shocks by Spreading Them Across