Suppose a research lab fired a chemist, and then an environmental protection group hired the chemist at the same salary.What would be the net effect of these events on aggregate demand?
A) The aggregate demand would shift rightward.
B) The aggregate demand would shift leftward.
C) The aggregate demand would become steeper.
D) The aggregate demand would remain the same.

Question

Suppose a research lab fired a chemist, and then an environmental protection group hired the chemist at the same salary.What would be the net effect of these events on aggregate demand?  
A) The aggregate demand would shift rightward. 
B) The aggregate demand would shift leftward. 
C) The aggregate demand would become steeper. 
D) The aggregate demand would remain the same.

Quizplus · Accepted Answer

The hiring and firing of an individual chemist at the same salary would not have a significant impact on the overall level of aggregate demand in the economy, so the aggregate demand curve would remain the same.

Suppose a Research Lab Fired a Chemist, and Then an Environmental