The term "shock":
A) Always refers to an unexpectedly bad event
B) Always refers to an increase in inflation
C) Does not tell us whether what has happened is unexpectedly bad or unexpectedly good
D) Always refers to a decrease in real GDP and an increase in unemployment

Question

Quizplus · Accepted Answer

The term "shock" refers to any unexpected event or change, whether it is good or bad. It does not necessarily imply a decrease in real GDP or an increase in unemployment, nor does it always refer to an increase in inflation.

The Term "Shock