Question

1.

Which of the following is not a situation involving external shock?

Consumers pay high prices for corn because of a severe drought.

Consumers reduce spending on expensive goods because the country has gone to war.

Consumers use more gasoline because of lower prices due to the discovery of large deposits of oil.

Consumers reduce spending because they fear that their nation is going to war.

Answer 1

Consumers reduce spending because they fear that their nation is going to war.

Step-by-step explanation:

An external shock is not a thought is something that is actually happening and that can have a drastic effect on the economy. That is kinda how Gradpoint explained it.

Answer 2

consumers reduce spending because they fear that their nation is going to war.