Prie ee AD AD Heal GDP 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 now equilibrium represented by point B. Which of the following events could cause such a shock? Select one: O A. a decrease in the worlid price of oil O B. an increase in the net tax rate O C. an increase in factor prices O D. a decrease in firms' desired investment expenditures our productivity

Prie ee AD AD Heal GDP 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 now equilibrium represented by point B. Which of the following events could cause such a shock? Select one: O A. a decrease in the worlid price of oil O B. an increase in the net tax rate O C. an increase in factor prices O D. a decrease in firms' desired investment expenditures our productivity

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 3SCQ: The short run aggregate supply curve was constructed assuming that as the price of outputs...

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