Which one of the following is an example of a real shock?
A) shock to money supply
B) shock to money demand
C) shock to production function
D) shock to price level

Question

Quizplus · Accepted Answer

A shock to the production function represents a real shock, meaning it affects the economy's output or productive capacity. The other options represent either monetary shocks (A and B) or nominal shocks (D), which affect the economy's price level but not its underlying productive capacity.

Which One of the Following Is an Example of a Real