FIGURE 23-4 -Refer to Figure 23-4.Suppose the Canadian Economy Is Initially in Initially

question 142

Multiple Choice

FIGURE 23-4
-Refer to Figure 23-4.Suppose the Canadian economy is initially in equilibrium at point A.An unexpected shock then shifts both the AD and the AS curves as shown and results in a new equilibrium represented by point B.Which of the following events could cause such a shock?

• A)an increase in the net tax rate
• B)a decrease in firms' desired investment expenditures
• C)an increase in factor prices
• D)a decrease in labour productivity
• E)a decrease in the world price of oil

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