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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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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