Suppose a Research Lab Fired a Chemist, and Then an Environmental

question 74

Multiple Choice

Suppose a research lab fired a chemist, and then an environmental protection group hired the chemist at the same salary.What would be the net effect of these events on aggregate demand?  

• A) The aggregate demand would shift rightward. 
• B) The aggregate demand would shift leftward. 
• C) The aggregate demand would become steeper. 
• D) The aggregate demand would remain the same.

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Definitions:

Charter of the Corporation

A legal document issued by a governmental authority that establishes a corporation and outlines its basic terms of operation, rights, and responsibilities.

Initial Directors

Initial directors are the first members of a corporation's board of directors, appointed at the time of incorporation to serve until the first shareholders' meeting.

Incorporator

The individual or entity responsible for creating and filing the necessary documentation to legally form a corporation with the state.

De Facto Corporation

A business entity that operates as if it were a corporation although it has not completed the legal formalities for incorporation, and may be treated as a corporation by courts.