Consider the Basic AD/AS Model

question 48

Multiple Choice

Consider the basic AD/AS model.If there is a decrease in the cost of non-labour inputs to production,the result will be to

• 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 left along the AS curve.

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Definitions:

Direct Exporting

A method of international business where a company sells its products directly to buyers in a foreign market without the use of intermediaries.

Agricultural Producer

An individual or company involved in the cultivation of plants and rearing of animals for food, fiber, and other products.

World Bank

An international financial institution offering loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Agricultural Exports

Products derived from farming and agriculture that are sold and shipped to other countries, contributing to a nation's economy.