Economics · Macroeconomics Concepts
With reference to economic dynamics, the term 'Hysteresis' is used in macroeconomic analysis to describe certain long-term effects of temporary shocks. In this context, what does the term 'Hysteresis' most appropriately refer to?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A macroeconomic policy framework aimed at maintaining a constant inflation rate to stabilise growth.
- 2A condition where past economic shocks or historical events continue to influence the future trajectory of an economy.✓
- 3A situation in which employment levels return rapidly to pre-recession levels after an economic downturn.
- 4The structural transition of an economy directly from agriculture to services without passing through industrialisation.
Correct answer
A condition where past economic shocks or historical events continue to influence the future trajectory of an economy.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Macroeconomics Concepts MCQs →Want more practice questions on Macroeconomics Concepts?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics Concepts