Which of the Following Would Be Represented by a Positive $\varepsilon$

question 103

Multiple Choice

Which of the following would be represented by a positive value of the random demand shock, $\varepsilon$ _t?

• A) an irrational wave of optimism among investors
• B) a decrease in government spending
• C) an aggressive increase in oil prices by a cartel
• D) an increase in the central bank's inflation target

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