Question

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants does not appear to be falling, there seems to be more people applying than jobs available.

Answer 1

Option “D” Consumers become worried about job loss and buy fewer goods and services than expected, is the correct answer

Step-by-step explanation:

Option “D” is correct because demand shock refers to the sudden decrease or increase in demand. However, option A, B, C represents supply shock because supply shock refers to a sudden increase and decrease of supply. Thus, in option A, B, C supply is decreasing suddenly while in option D the demand is decreasing. Thus option D is correct.