Which Increases Aggregate Demand

question 5

Multiple Choice

Which increases aggregate demand?

• A) earthquake destruction.
• B) technological innovations.
• C) consumers become more optimistic.
• D) higher value of the Canadian dollar.
• E) higher interest rates.

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Definitions:

Production Possibilities Frontier (PPF)

A curve depicting all maximum output possibilities for two goods, given a set of inputs.

Technology Available

Refers to the tools, devices, systems, and solutions that are currently accessible and can be used to resolve problems, improve efficiency, or enhance quality of life.

Labor Productivity

The measurement of economic output created per unit of labor input.

Productivity Of Labor

The measure of the output produced per unit of labor; an increase in labor productivity typically means more output is produced with the same amount of labor.