Economic nightmare?

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•
Business, Health Sciences, Biology
•
11th Grade - University
•
Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a demand shock in the context of an economic recession?
A sudden increase in consumer spending
A decrease in consumer and business spending due to economic fears
A rise in stock market investments
An increase in the availability of essential goods
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does a supply shock differ from a demand shock?
It involves a decrease in consumer confidence
It results from increased costs or unavailability of essential goods
It is caused by a rise in stock market prices
It leads to increased government spending
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What makes the coronavirus pandemic particularly challenging for the economy?
It leads to increased consumer spending
It can trigger demand, supply, and financial shocks simultaneously
It only affects the financial sector
It only causes a demand shock
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might traditional fiscal policy be ineffective during a pandemic?
Because quarantines limit the ability to spend
Because it only affects the supply side
Because it increases interest rates
Because it leads to higher taxes
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key factor in economic recovery from a pandemic-induced recession?
Increasing interest rates
Boosting public confidence to encourage spending
Limiting international trade
Reducing government spending
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