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:

Personal Power

Power stemming from an individual's unique traits or abilities, allowing them to influence others beyond formal authority.

Reward Power

The ability to influence others' behavior by offering positive incentives or rewards.

Expert Power

Influence wielded by an individual due to their expertise, skills, or knowledge, which others perceive as valuable.

Referent Power

A form of influence based on the attractiveness and charisma of the leader or influencing agent.