For each of the following shocks, say whether it is a demand-side shock or a supply-side shock. a. Consumer confidence falls: (Click to select) b. Government spending increases: (Click to select) c. The price of foreign goods increases: (Click to select) d. The price of oil increases: (Click to select) e. A tornado destroys manufacturing plants (ick to select) Supply-side shock Demand-side shock

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Business

Kennedy

3 February, 13:25

For each of the following shocks, say whether it is a demand-side shock or a supply-side shock. a. Consumer confidence falls: (Click to select) b. Government spending increases: (Click to select) c. The price of foreign goods increases: (Click to select) d. The price of oil increases: (Click to select) e. A tornado destroys manufacturing plants (ick to select) Supply-side shock Demand-side shock

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Catherine Barker · Answer 1

Consumer confidence falls : demand side shock (negative)

Government spending increases : demand side shock (positive)

Price of foreign goods increases : supply side shock (negative)

Price of oil increases : supply side shock (negative)

A tornado destroys manufacturing plants : supply side shock (negative)