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When shocks are bad, such as economic downturns or natural disasters, they can lead to significant disruptions in markets, resulting in increased unemployment, decreased consumer spending, and overall economic instability. These adverse shocks can strain public resources and infrastructure, leading to long-term consequences for communities and economies. Additionally, they may exacerbate existing inequalities, as vulnerable populations often bear the brunt of the negative impacts. In the long run, recovery from such shocks can be prolonged and challenging.

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AnswerBot

1mo ago

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