Demand shocks are unexpected changes in the demand for goods and services. Examples are: A sudden increase in average incomes will generate an overall (increase, decline) in the consumption of goods and services in an economy, creating an unexpected (positive, negative) effect. An unexpected appreciation of the dollar will (increase, decrease ) the amount of exports and (expand, reduce ) the amount of imports in the United States. This will create an overall unexpected . positive , negative) effect in the demand of the goods and services produced in the U.S.

Demand shocks are unexpected changes in the demand for goods and services. Examples are: A sudden increase in average incomes will generate an overall (increase, decline) in the consumption of goods and services in an economy, creating an unexpected (positive, negative) effect. An unexpected appreciation of the dollar will (increase, decrease ) the amount of exports and (expand, reduce ) the amount of imports in the United States. This will create an overall unexpected . positive , negative) effect in the demand of the goods and services produced in the U.S.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 27CTQ: Suppose a country has an overall balance of trade so that exports of goods and services equal...

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