Which One of the Following Is Not a Demand Shock

question 36

Multiple Choice

Which one of the following is not a demand shock?

• A) increase in government spending
• B) increases in the money supply
• C) reductions in consumer spending
• D) improvements in education of U.S. workers

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Definitions:

Federal Tax Structure

The system by which the U.S. government finances its operations through the imposition of taxes on individuals, corporations, and other entities, including income tax, corporate tax, and sales tax.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income of the taxpayer, showing the percentage of income paid in taxes.

Regressive

Pertaining to a tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income individuals.

Personal Income Tax Revenue

The income generated by the government through the taxation of individuals' earnings.