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
Identity, monotheism, and covenant
The answer to this question is d. <span>question one's own view of the world
In ethnographic method, the researchers will come down as one of the test subjects during the experiment.
This method allow the researchers to experience the situation based on others' point of view which gained them deeper understanding upon the situation</span>
Answer:
Its great! i like how you added that she has siblings
Explanation:
The answer is: <span>the directionality problem
</span><span>the directionality problem refers to a type of problem in which the cause and effect relationship is not known.But even though the relationship is not known, we can now for sure that the problem is exist because it shows obvious effect/symtomps.</span>