Which of the Following Would Cause a Positive Aggregate Demand

question 130

Multiple Choice

Which of the following would cause a positive aggregate demand shock,but leave the aggregate supply curve unaffected?

• A)A free trade agreement between Canada and Europe that leads Canadian businesses to increase investment expenditures.
• B)A severe drought lasting for six months that destroys agricultural and forestry production.
• C)A medical report confirming that improved health for Canadian workers caused fewer lost days of production.
• D)An improvement in the computer literacy of workers.
• E)A substantial increase in world oil prices.

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Definitions:

Buyout

A financial agreement where one party offers to purchase the ownership stake of a company or a portion of its assets.

Organization

An entity composed of people and resources structured in a way to achieve specific goals, often through coordinated activities and processes.

Employee Surplus

A situation in which a company has more employees than needed, often leading to layoffs, reassignments, or other workforce adjustments.

Hiring Freeze

A temporary halt in the recruitment process, typically implemented to reduce costs or reassess staffing needs within an organization.