Consider the Basic AD/AS Model

question 64

Multiple Choice

Consider the basic AD/AS model.Suppose that a rising percentage of high-school graduates are illiterate,resulting in a decrease in average labour productivity.This change will

• A)shift the AD curve to the left.
• B)shift the AD curve to the right.
• C)shift the AS curve to the left.
• D)shift the AS curve to the right.
• E)cause a movement to the right along the AS curve.

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Definitions:

Budget Cutting

The process of reducing spending within an organization or institution, often to align with financial constraints or strategic priorities.

Accreditation

A formal, independent verification that a program or institution meets established quality standards and is competent to carry out specific conformity assessment tasks.

Regulatory Agencies

Governmental bodies responsible for enforcing laws and regulations within specific industries or sectors.

Observed Performance

The evaluation of an employee's work activities through direct observation to assess their efficiency, effectiveness, and adherence to procedures.