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Oksanka [162]
3 years ago
15

An increase in consumer expenditures during the holiday season, a decrease in purchases of U.S. goods by foreigners, a tax incre

ase, and a decline in new home starts are examples of: Group of answer choices a monetary policy. an aggregate supply shock. an aggregate demand shock. expectations. Ricardian equivalence.
Business
1 answer:
Minchanka [31]3 years ago
6 0

Answer:

Option C (an aggregate demand shock) is the right solution.

Explanation:

  • Examples of such an overall demand shock are the same as the aforementioned, i.e. a rise throughout customer sales over the holiday season, a reduction in overseas imports of U.S. goods, a consumption tax, as well as a drop in new housing starts when they trigger a change in the AD curve.  
  • A transition exists in aggregate demand at that same specified price level.  

And therefore option C seems to be the right alternative,

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