Which of the following is an example of economic environment?

The correct option is: Money supply in economy.

To understand why this is the correct answer, let us look at the components of the business environment. The business environment is made up of various dimensions, including economic, social, technological, political, and legal environments.

The economic environment consists of economic factors that influence a business's operations and decision-making. These factors typically include inflation rates, interest rates, consumer income, economic growth policies, and monetary variables. The money supply in the economy is a key monetary policy variable directly managed by a nation's central bank and falls squarely under the economic environment, as changes in the money supply influence interest rates, spending power, and overall demand.

Let us analyze why the other options belong to different dimensions of the business environment:
1. Constitution of the country: This forms the fundamental legal framework and structure of governance, representing the political/legal environment.
2. Life expectancy: This is a demographic and health-related statistic of the population, which falls under the social environment.
3. Population shifts: This refers to changes in the size, density, and distribution of the population, which also represents the social/demographic environment.