Which of the following could not be described as an asymmetric macroeconomic shock ?
Correct answer: D. A sudden and substantial rise in prices on the world oil market
- A. None of these answers All of them are asymmetric macroeconomic shocks
- B. A sudden and substantial fall in the worldwide demand for French wine
- C. An epidemic of an animal disease in a country that significantly reduces the country's agricultural output
- D. A sudden and substantial rise in prices on the world oil market
Explanation
A worldwide rise in oil prices affects countries broadly and is therefore a common, or symmetric, shock. A country-specific fall in wine demand or an epidemic affecting one country's agriculture is asymmetric.
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