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

Which one of the following is not a demand shock?A)  increase in government spendingB)  increases in the money supplyC)  reductions in consumer spendingD)  improvements in education of U.S. workers

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Final Answer : D, Explanation :  Options A, B, and C are all demand shocks as they affect the level of demand in the economy, either through increased government spending, increased money supply, or reduced consumer spending. Option D, however, is not a demand shock as it is an improvement in education which can lead to an increase in productivity and potential supply, rather than demand.

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

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