Use the Following to Answer Questions

question 116

Multiple Choice

Use the following to answer questions:
-A positive demand shock will result from:

• A) a sudden increase in nominal wages.
• B) an increase in the potential GDP.
• C) a move by the Bank of Canada to lower the interest rate.
• D) consumers and firms becoming more pessimistic.

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Definitions:

Marginal Benefits

The additional satisfaction or utility gained by consuming or producing one more unit of a good or service.

Marginal Costs

The rise in overall expenses resulting from the production of an extra unit of a product or service.

Studying Economics

The academic pursuit focused on understanding how individuals, businesses, and governments make choices on allocating scarce resources to satisfy their unlimited wants.

Marginal Benefit

The heightened pleasure or utility a person obtains from the additional consumption of a unit of a good or service.