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.
Learn about positive demand shock:
brainly.com/question/14528859
#SPJ4
Answer:
C:insurrection
Explanation:
Those terrorists get jail time now.
Answer: It is generally taught in the schools that Lichcchavi Period was the Golden Age because of the art and architecture, culture and language, and the socio-political structure the Lichchhavi kings brought.
Explanation:
The number of skycrapers increased a lot because there was no room left on the ground.