nli T-Mobile Wi-Fi 9:19 AM 63%) D+ a mathxl.com ECN203-Fail 2017-Online Test: Fi

Question

nli T-Mobile Wi-Fi 9:19 AM 63%) D+ a mathxl.com ECN203-Fail 2017-Online Test: Final Exam This Question: 1 pt 79of88 (59 complete ssues and Applications, Gauging Financial Sources of Aggregate Demand Shocks Consider the figure below which shows the VIX Index of financial-market volataty snce 1 During summer of 2011, the U.S. economy was experiencing a negative aggregate demand shock, caused mainly by 0 A. substantial aocourong scandals involving major corporations. B. a financial crisis where vaue of shares traded lost 15 percent of es vaue. 0 C, a default by a major financial firm named Long-term capital management. O D. the govenment bail-out of auto manufacturers, namely GM and Chrysler

Explanation / Answer

Negative demand shocks are caused by terrorist attack ,natural disasters or any other unforeseen economic activity or a financial shock . Part b is the correct answer as economy is facing fall in stock market when shares lost there value by 15% .

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