Question

for each of the following shocks, say whether it is a demand-side shock or a supply-side shock. a. consumer confidence falls: (click to select) . b. government spending increases: (click to select) . c. the price of foreign goods increases: (click to select) . d. the price of oil increases: (click to select) . e. a cyclone destroys manufacturing plants: (click to select) .

Answer 1

a. demand-side shock

b. demand-side shock

c. supply-side shock

d. supply-side shock

e. supply-side shock