Asked by
Marie Mcgrew
on Oct 19, 2024Verified
A big increase in government spending is an example of a ________.
A) positive demand shock
B) positive supply shock
C) negative demand shock
D) negative supply shock
Government Spending
Expenditures by the government on goods and services, including infrastructure projects, welfare, and salaries for government workers.
Demand Shock
A sudden event that significantly alters demand for goods or services, either positively or negatively, in an economy.
Supply Shock
An unexpected event that suddenly changes the supply of a product or commodity, leading to sudden price changes and/or shifts in the market.
- Grasp the principles of supply and demand shocks in economics.
Verified Answer
KW
Learning Objectives
- Grasp the principles of supply and demand shocks in economics.