Which Changes Canada's Short-Run Aggregate Supply

question 202

Multiple Choice

Which changes Canada's short-run aggregate supply?

• A) the Government of Canada legalizes the cultivation of marijuana
• B) a senior citizen decides to keep working instead of retiring
• C) a working mother decides to quite her job and go back to school full-time
• D) American consumers stop buying Canadian beef during an outbreak of Mad Cow Disease
• E) Canadian manufacturers want to increase their sales as prices rise

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Definitions:

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.

Discount Rate

The discount rate refers to the interest rate applied in discounted cash flow analysis to calculate the present value of future cash flows.

Annual Cash Inflows

The total amount of money received by a business from its operations, investments, and financing activities over the course of a year.