Which of the following is an example of a demand shock?
A)Hurricane Harry knocks out oil drilling platforms in the Gulf of Mexico.
B)Consumers become worried about job loss and buy fewer goods and services than expected.
C)Floods in the Midwest destroy crops.
D)The federal government unexpectedly requires automobile producers to raise fuel efficiency standards.

Question

Quizplus · Accepted Answer

A demand shock refers to a sudden and unexpected change in the demand for goods and services. Option B describes a situation where consumers reduce their spending due to concerns about job security, which directly affects the demand side of the economy.

Which of the Following Is an Example of a Demand