Canadian firms build new pipelines across the nation. What is the effect on the quantity of real GDP demanded or aggregate demand in Canada?
A)The quantity of Canadian real GDP demanded increases.
B)The quantity of Canadian real GDP demanded decreases.
C)Canadian aggregate demand increases.
D)Canadian aggregate demand decreases.
E)There is no change to either the quantity of real GDP demanded or to aggregate demand.

Question

Quizplus · Accepted Answer

Building new pipelines will lead to increased investment and job creation in the construction and related industries, leading to an increase in Canadian aggregate demand. As a result, the quantity of Canadian real GDP demanded is also likely to increase.

Canadian Firms Build New Pipelines Across the Nation