Which of the following is an example of positive demand shock?
A) Loss of financial assets due to financial crisis.
B) Global recessions resulting in the reduction of exports.
C) Improved consumer sentiments.
D) Lower price of energy.

Question

Quizplus · Accepted Answer

Improved consumer sentiments can lead to a positive demand shock as it increases the willingness of consumers to spend more, thereby increasing demand for goods and services.

Which of the Following Is an Example of Positive Demand