Which one of the following is not a demand shock?
A) Increase in government spending
B) Increases in the money supply
C) Reductions in consumer spending
D) Improvements in education of U.S. workers

Question

Quizplus · Accepted Answer

Improvements in education of U.S. workers is not a demand shock, as it does not directly affect the level of aggregate demand in the economy. A demand shock refers to any event that alters the level of aggregate demand, such as changes in government spending, changes in money supply, or changes in consumer spending. Improvements in education may have long-term effects on productivity and potential GDP, but they do not create an immediate change in aggregate demand.

Which One of the Following Is Not a Demand Shock