Asked by Jasmine Mendoza on May 12, 2024
Verified
An example of a negative demand shock is
A) a decrease in the money supply.
B) a decrease in government spending.
C) an increase in foreign export demand.
D) a decrease in the price of imported oil.
E) a decrease in the money supply and a decrease in government spending.
Demand Shock
An event that affects the demand for goods and services in the economy.
Money Supply
The sum of all financial assets present in an economy at a given time, encompassing cash, coins, and the amounts in checking and savings accounts.
Government Spending
Expenditures made by public authorities on goods, services, and public works, which can influence economic activity.
- Identify the effects of demand shocks on the economy.
Verified Answer
Learning Objectives
- Identify the effects of demand shocks on the economy.
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