Demand shocks do NOT include a(n):
A) reduction in money supply.
B) tax increase.
C) increase in government expenditure.
D) increase in commodity prices.

Question

Quizplus · Accepted Answer

Demand shocks are typically related to changes in fiscal or monetary policy, such as changes in taxes, government spending, or money supply. An increase in commodity prices is generally considered a supply shock, as it affects production costs and supply rather than demand.

Demand Shocks Do NOT Include A(n)