In Terms of the AD-AS Model, the New Classical Approach

question 41

Multiple Choice

In terms of the AD-AS model, the new classical approach indicates that an expected decrease in the money supply will not affect output because

• A)neither the AD nor SRAS curve will be affected.
• B)the AD curve will shift left, but the SRAS curve will not shift.
• C)the SRAS curve will shift down, but the AD curve will not be affected.
• D)the AD curve will shift left, and the SRAS will shift down by the same amount.

Differentiate between legitimate and illegitimate power and its consequences on social structures.

Recognize the influence of civil society in the political system.

Understand the factors contributing to political democracy and its challenges.

Analyze the role of political parties, lobbies, and other political organizations in shaping policies and governance.

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Definitions:

Restraint of Trade

Legal agreements or policies that restrict competition or limit the freedom to conduct business in a specific market or manner.

Loss Leader Advertising

A marketing strategy where a product is sold at a loss to attract customers in the hope they will buy other items at full price.

Competition Act

Legislation aimed at promoting fair business practices, preventing anti-competitive behavior, and regulating mergers to ensure a competitive market environment.

Misleading Advertising

Promotional material that deceives or misinforms consumers, either intentionally or unintentionally.