When a negative shock arrives and the economy slows down in the current period:
A) new technology is more likely to be invented.
B) worker productivity rises.
C) many people are less keen to work.
D) people tend to work harder.

Question

Quizplus · Accepted Answer

When the economy slows down due to a negative shock, there is usually a decrease in job opportunities, wages, and overall economic activity. This often leads to a decrease in motivation among workers to find work and contribute to the economy. Therefore, many people become less keen to work during a slowdown. Options A, B, and D are less likely to happen during a slowdown because new technology and worker productivity usually require investments and a stable economy, and people may not have the energy or resources to work harder when facing economic challenges.

When a Negative Shock Arrives and the Economy Slows Down