Economists believe that most short-run fluctuations are the result of:
A)supply shocks.
B)demand shocks.
C)unexpected changes in the availability of imported resources.
D)negative supply shocks.

Question

Quizplus · Accepted Answer

Economists believe that most short-run fluctuations in the economy are the result of demand shocks, which refers to unexpected changes in the level of demand for goods and services. This can be caused by factors such as changes in consumer spending habits, shifts in government spending or taxation policies, and changes in investment or export levels. While supply shocks can also impact short-run fluctuations, they are generally seen as less common and less impactful than demand shocks.

Economists Believe That Most Short-Run Fluctuations Are the Result Of