Consider the Basic AD/AS Model

question 85

Multiple Choice

Consider the basic AD/AS model.A rise in an input price like the wage rate would be expected to create a new macroeconomic equilibrium,which in comparison to the original equilibrium,has a price level that is

• A)higher and a real GDP that is higher.
• B)higher and a real GDP that is lower.
• C)higher and a real GDP that is the same.
• D)lower and a real GDP that is higher.
• E)lower and a real GDP that is lower.

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Definitions:

Social Roles

The expected behaviors, duties, and responsibilities assigned to individuals based on their position in society.

Illnesses

Conditions that affect the health and well-being of individuals, often causing symptoms or suffering that require medical attention or care.

Sick Role

A sociological concept describing the expectations of an individual who is ill and the societal expectations for how that person should behave.

Functionalism

A theoretical perspective that views society as a complex system whose parts work together to promote solidarity and stability.