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 _____
A) an increase in aggregate demand.
B) an increase in aggregate supply.
C) a decrease in aggregate supply.
D) a decrease in aggregate demand.
E) no change in aggregate demand.

Question

Quizplus · Accepted Answer

Since the chemist's employment status and salary remain unchanged, her ability to purchase goods and services does not change, resulting in no impact on aggregate demand.

If the Naval Research Laboratory Fired a Chemist and the Environmental