Which of the following is NOT a negative aggregate demand shock?
A) a slower money growth rate
B) higher taxes
C) lower growth of government spending
D) decreased import growth

Question

Quizplus · Accepted Answer

Decreased import growth is actually a positive shock to aggregate demand, as it means that more of the goods and services consumed domestically are being produced within the country, creating jobs and boosting economic activity. The other choices (slower money growth rate, higher taxes, lower growth of government spending) are all negative shocks to aggregate demand, as they reduce the amount of money individuals and businesses have available to spend, reducing overall demand in the economy.

Which of the Following Is NOT a Negative Aggregate Demand