Consider the AD/AS Macro Model

question 110

Multiple Choice

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

• A)rise in real GDP but price level changes will be indeterminate.
• B)rise in real GDP and a rise in the price level.
• C)rise in real GDP and a fall in the price level.
• D)an indeterminate change in real GDP and a rise in the price level.
• E)an indeterminate change in real GDP and a fall in the price level.

Analyze the effects of pollution taxes and other government interventions in markets with externalities.

Evaluate the effectiveness of copyright laws and other forms of government intervention in protecting private goods.

Understand the concept of market competition and its impact on output and efficiency.

Recognize the motivations behind government intervention in markets and the concept of government failure.

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Definitions:

Occupational Groups

Durkheim’s mechanism to promote the integration of workers.

Human Resource Management

An area of research dedicated to helping workers integrate into an organization and identify with its goals.

Moral Obligations

Duties or commitments that arise not from law but from principles of ethics and morality.

Restatement

A rephrasing or recompilation of legal principles in a specific area aiming to simplify and clarify the law without having binding authority.