Which of the following would be considered an external shock?
A) a decline in tax revenues during a recession
B) a recession
C) a depression
D) a war

Question

Quizplus · Accepted Answer

A war is an external shock because it is an event that is outside of the control of a country's economy and can have a significant impact on it. Options A, B, and C could also impact an economy, but they are not necessarily considered external shocks as they can be a result of internal economic conditions or policies.

Which of the Following Would Be Considered an External Shock