If the Naval Research Laboratory fired a chemist and the Environmental Protection Agency hired her at the same salary,the net effect of these events would cause _____ in aggregate demand.
A)an increase
B)a decrease
C)no change

Question

Quizplus · Accepted Answer

The hiring and firing of the chemist at different agencies does not have a direct impact on aggregate demand. Aggregate demand refers to the total amount of goods and services demanded by all buyers in the economy at a given price level. The chemist's employment status may indirectly affect aggregate demand if it changes her spending habits or the production of goods and services in the economy, but there is not enough information to make a definitive judgment. Therefore, the net effect is most likely no change in aggregate demand.

If the Naval Research Laboratory Fired a Chemist and the Environmental