The Diagram Below Shows an AD/AS Model for a Hypothetical

question 80

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. FIGURE 24-6 Refer to Figure 24-6.If the government takes no action to change the short-run macro equilibrium in this economy,then

• A)the AD curve will shift downward until it intersects with the AS curve at point E.
• B)the AD curve will shift upward until it intersects with the AS curve at point C.
• C)the AS curve will shift to the left until it intersects with the AD curve at point D.
• D)the AS curve will shift to the right until it intersects with the AD curve at point B.
• E)the AS curve can either shift to the right or left depending on the fiscal policy.

---

Definitions:

Achievement-Oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and demonstrating confidence in team members' abilities.

Consultation

The process of seeking expert advice or opinions to inform decisions or strategies.

Subordinates

Employees or team members who are lower in the organizational hierarchy and report to a supervisor or manager.

Formal Positions

Recognized or official roles within an organization that come with specific responsibilities and authority.