Which government fiscal policy is a positive supply shock?

Question

Quizplus · Accepted Answer

A positive supply shock typically refers to an event that increases the supply of goods and services in an economy, leading to lower prices and increased output. None of the options provided (increasing taxes, decreasing transfer payments, decreasing government spending, increasing government spending) directly lead to a positive supply shock. These actions are related to fiscal policy, which primarily affects demand rather than supply.

Which Government Fiscal Policy Is a Positive Supply Shock