When a shock is amplified,a mild _____ shock is transformed into _____.
A) negative;a mild positive shock
B) negative;an economic boom
C) negative;a more serious reduction in output
D) positive;a mild negative shock

Question

Quizplus · Accepted Answer

When a shock is amplified, it means that its effects are magnified, so a mild negative shock can result in a more serious reduction in output. Option A and D do not make logical sense because a shock cannot transform into the opposite of what it initially was. Option B is also not correct because an economic boom cannot result from a shock, which is a sudden and unexpected event with negative consequences.

When a Shock Is Amplified,a Mild _____ Shock Is Transformed