Consider the following terms in economics:

Economic contagion and domino effects refers to a situation where an adverse occurrence in a particular economy spread to other economies.

Dutch disease refers to a phenomenon wherein a country witnesses uneven growth across sectors due to the discovery of natural resources.

Which of the statements given above is/are correct?

Question

Economic contagion, also known as Financial Contagion is a situation where an adverse occurrence in a particular economy or region spreads to other economies or regions through co-movements in stock prices, exchange rates, sovereign spreads and capital flows.
The Domino Effect in economics refers to a situation in which an economic problem in one country can spread like a contagion to similar countries and firms. It is basically a chain reaction caused by an event that was not anticipated.
Dutch Disease in economics refers to a phenomenon wherein a country witnesses uneven growth across sectors due to the discovery of natural resources, especially large oil reserves.

GKToday Admin · Accepted Answer

Both 1 & 2

Economic contagion, also known as Financial Contagion is a situation where an adverse occurrence in a particular economy or region spreads to other economies or regions through co-movements in stock prices, exchange rates, sovereign spreads and capital flows.
The Domino Effect in economics refers to a situation in which an economic problem in one country can spread like a contagion to similar countries and firms. It is basically a chain reaction caused by an event that was not anticipated.
Dutch Disease in economics refers to a phenomenon wherein a country witnesses uneven growth across sectors due to the discovery of natural resources, especially large oil reserves.

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