Which of the following is not an example of positive demand shock?
A) Increase in autonomous exports.
B) Increase in autonomous government expenditure.
C) Increase in autonomous taxes.
D) Increase in autonomous wealth.

Question

Quizplus · Accepted Answer

A positive demand shock refers to an event that increases aggregate demand. Choices A, B, and D all describe scenarios where aggregate demand would likely increase due to higher exports, government spending, and wealth, respectively. Choice C, an increase in autonomous taxes, would typically reduce disposable income for consumers, thereby decreasing aggregate demand, not increasing it. This makes it not an example of a positive demand shock.

Which of the Following Is Not an Example of Positive