Consider the Basic AD/AS Model

question 19

Multiple Choice

Consider the basic AD/AS model.When wage rates rise faster than the increase in labour productivity,the

• A)AD curve shifts left.
• B)AS curve shifts upward.
• C)output gap falls.
• D)output gap increases.
• E)AS curve shifts downward.

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Definitions:

Lewis Dot Structure

A diagrammatic representation of the valence electrons in an atom, ion or molecule, using dots around the symbol of an element.

Potassium

A soft, silvery-white metallic element, highly reactive and essential for biological organisms, symbolized as K.

Se

Selenium, a nonmetal element with properties that are intermediate between those of metals and nonmetals, used in various industrial applications.

Lewis Dot Structure

A representation of the valence electrons in an atom or molecule, illustrating the bonds between atoms and lone pairs of electrons.