Consider the Basic AD/AS Model

question 38

Multiple Choice

Consider the basic AD/AS model.If major labour unions succeed in increasing wages across the economy,the AS curve will shift

• A)downward (to the right),reducing the price level.
• B)downward (to the right)and then return immediately to its original position.
• C)upward (to the left)and then return immediately to its original position.
• D)upward (to the left),increasing the price level.
• E)None of the above; there will no effect on the AS curve.

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Definitions:

UCC

Uniform Commercial Code; a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, and secured transactions.

Negotiate

To discuss and arrive at a mutual agreement between parties, typically involving compromises or concessions by those involved.

Magnuson-Moss Act

The Magnuson-Moss Warranty Act is a federal law that governs consumer product warranties in the United States, ensuring that manufacturers provide clear and detailed warranty information.

Written Warranty

A guarantee provided in written form by the maker or seller of a product, ensuring the product's condition, quality, or performance for a specified period.