What can directly change aggregate demand and long-run aggregate supply?
A) GDP in the rest of the world (R.O.W.).
B) resource input prices.
C) interest rates.
D) value of the Canadian dollar.
E) business investment.

Question

Quizplus · Accepted Answer

Business investment can directly change aggregate demand by increasing spending on capital goods, and it can also affect long-run aggregate supply by enhancing productive capacity and efficiency.

What Can Directly Change Aggregate Demand and Long-Run Aggregate Supply