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:

Chapter 7

A provision under the U.S. Bankruptcy Code that allows individuals or businesses to liquidate their assets to pay off creditors.

Reduces to Money

The process of converting assets or damages into their monetary value.

Secured Creditor

A lender that has the right to claim specific assets of the borrower as collateral in case of default.

Order of Priority

The sequence or ranking used to determine the importance or urgency of different items, claims, or needs.