FIGURE 23-4 Refer to Figure 23-4

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