A big increase in government spending is an example of a positive demand shock.
A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.
Expansionary fiscal policy is an increase in government spending or a decrease in taxation, while contractionary fiscal policy is a decrease in government spending or an increase in taxes. Expansionary fiscal policy can be used by governments to stimulate the economy during a recession.
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The other persons insurance unless they do not have insurance if you have full coverage your insurance company will cover it usually including you pay your deductible and in both cases you can't take them to court by filing a small civil suit and making a report in the police station. Assuming you have a plate number or name that identifies the other party they will be obligated to go to court and if they don't they will recieve a bench warrant or also know as FAT warrant either way these things do take time but each step is a step closer to you winning your case and well deserved compensation
Answer:
B. False is the correct answer.
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Answer:
B. Crack down on government corruption.
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