A change to a variable in a model that causes other variables to deviate from their long-run equilibrium values in the short run or in the long run is referred to as a
A)deviation.
B)shock.
C)standard deviation.
D)disequilibrium catalyst.

Question

Quizplus · Accepted Answer

A shock is a sudden change or disturbance to the system that causes other variables to deviate from their long-run equilibrium values in the short run or in the long run. This can be caused by various factors such as changes in government policies, unexpected events, or changes in market conditions. A deviation refers to a departure from a target or expected value, while standard deviation is a statistical term that measures the amount of variability or dispersion in a set of data. Disequilibrium catalyst is not a commonly used term in economics.

A Change to a Variable in a Model That Causes