Economists believe that most short-run fluctuations:
A) Are the result of demand shocks
B) Are the result of supply shocks
C) Will not last long because prices will adjust to equalize the quantities demanded and supplied of goods and services
D) Will always have a negative impact on real GDP, inflation, and unemployment

Question

Quizplus · Accepted Answer

Demand shocks are often seen as the primary cause of short-run fluctuations in the economy, affecting output and employment levels.

Economists Believe That Most Short-Run Fluctuations