Demand shocks are unexpected changes in the demand for goods and services. Examples are: A sudden increase in average incomes will generate an overall (increase, decline) in the consumption of goods and services in an economy, creating an unexpected (positive, negative) effect. An unexpected appreciation of the dollar will (increase, decrease ) the amount of exports and (expand, reduce ) the amount of imports in the United States. This will create an overall unexpected . positive , negative) effect in the demand of the goods and services produced in the U.S.
Demand shocks are unexpected changes in the demand for goods and services. Examples are: A sudden increase in average incomes will generate an overall (increase, decline) in the consumption of goods and services in an economy, creating an unexpected (positive, negative) effect. An unexpected appreciation of the dollar will (increase, decrease ) the amount of exports and (expand, reduce ) the amount of imports in the United States. This will create an overall unexpected . positive , negative) effect in the demand of the goods and services produced in the U.S.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter25: The Keynesian Perspective
Section: Chapter Questions
Problem 20CTQ: Suppose the economy is operating at potential GDP when It experiences an increase in export demand....
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