Multiple Choice
Which of the following would cause a positive aggregate demand shock,but leave the aggregate supply curve unaffected?
A) A free trade agreement between Canada and Europe that leads Canadian businesses to increase investment expenditures.
B) A severe drought lasting for six months that destroys agricultural and forestry production.
C) A medical report confirming that improved health for Canadian workers caused fewer lost days of production.
D) An improvement in the computer literacy of workers.
E) A substantial increase in world oil prices.
Correct Answer:

Verified
Correct Answer:
Verified
Q125: Consider the basic AD/AS model.Suppose that high-school
Q126: Consider two economies,A and B.Economy A has
Q127: If the economy's AS curve is upward
Q128: If the economy's AS curve is completely
Q129: The economy's AS curve is often assumed
Q131: Suppose there is an exogenous increase in
Q132: Consider the following news headline: "Threat of
Q133: Which of the following statements about the
Q134: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 23-1 Refer
Q135: An aggregate demand shock will have a