A real shock is any shock that increases or decreases the gr

A real shock is any shock that increases or decreases the growth rate of:

Select one:

a. potential GDP.

b. investment spending.

c. exports.

d. consumer spending.

Solution

A real shock can effect positively or negatively on the whole and it effects the endogenous variables lik GDP, consumption and investment etc.

Therefore (a) potential GDP is the answer