Consider the Basic AD/AS Diagram

question 135

Multiple Choice

Consider the basic AD/AS diagram.The vertical line at Y* shows the relationship between the price level and the amount of output ________ have adjusted to output gaps.

• A)demanded by households after all factor prices
• B)supplied by firms after all factor prices
• C)demanded by households before all factor prices
• D)supplied by firms before all factor prices
• E)supplied by firms after all output prices

---

Definitions:

Collective Bargaining

The process of negotiating, administering, and interpreting a labour contract.

Acculturation

The process of adopting the cultural traits or social patterns of another group, often as a result of prolonged contact.

Mediation

A form of conflict resolution where a neutral third party assists the disputing parties in reaching a consensus or settlement.

Nepotism

Favoritism granted to relatives or friends, especially in a work context, where they are given preferential treatment or opportunities.