Consider the AD/AS Model

question 115

Multiple Choice

Consider the AD/AS model.Since output in the long run is determined by Y*,the only role of the AD curve is to determine the price level.This is true because

• A)Y* is independent of the price level.
• B)the aggregate demand curve is vertical.
• C)the aggregate demand curve is horizontal.
• D)Y* depends on the price level.
• E)the AS curve is upward sloping.

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Definitions:

Work Teams

Groups of employees who are assigned to collaborate and work together towards achieving a common goal or completing a specific project.

Team Performance

The level of productivity, efficiency, and effectiveness achieved by a group of individuals working together towards common goals or tasks.

Merit Pay

Is pay awarded to employees on the basis of the relative value of their contributions to the organization.

Relative Value

The importance or worth of something in comparison to other items, based on its utility, rarity, or desirability.