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.

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Definitions:

Conflict

A situation where two or more parties have incompatible objectives, interests, or needs.

Uncertainty Avoidance

A cultural dimension that describes the extent to which individuals in a society are uncomfortable with ambiguity and uncertainty, often preferring clear rules and predictability.

Conflict

A situation where individuals or groups have opposing interests, ideas, or beliefs that clash.

Diversity

All forms of difference among individuals, including culture, gender, age, ability, religion, personality, social status, and sexual orientation.