What is taking place when an economy experiences quick changes that have large effects on productivity?
A) economic shocks
B) geographic capital fluctuations
C) decreases in aggregate demand
D) time bunching

Question

Quizplus · Accepted Answer

Quick changes that have large effects on productivity are referred to as economic shocks. These shocks can come in the form of natural disasters, political instability, changes in consumer demand, or unexpected changes in technology. These shocks can disrupt the economy and cause significant changes in output, employment, and prices.

What Is Taking Place When an Economy Experiences Quick Changes