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:

Cognitive Ability

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Cognitive Ability

The intellectual capacity to think, analyze, and solve problems, often measured through IQ tests and specific cognitive assessments.

Cognitive Ability

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