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.

---

Definitions:

Intentional Torts

Legal wrongs resulting from deliberate actions rather than accidents, often leading to civil lawsuits for damages.

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, to punish the defendant for egregious behavior and deter future similar acts.

Compensatory Damages

Financial awards to a plaintiff to compensate for proven harm, loss, or injury caused by the defendant.

Nominal Damages

A small amount of money awarded to a plaintiff in a lawsuit to recognize a legal wrong suffered, without substantial loss or injury being proved.