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 Canadian real GDP demanded or to Canadian aggregate demand.

Question

Quizplus · Accepted Answer

The construction of new pipelines will lead to an increase in investment spending, which is a component of aggregate demand. This increase in investment spending will lead to an increase in Canadian aggregate demand.

Canadian Firms Build New Pipelines Across the Nation